Ecommerce fraud is increasing, but many brands and retailers are not equipped to protect against threats. That is according to findings from a new report we published with Modern Retail and our anti-fraud solution partner Kount.
Survey results from “How Brands Are Fighting Ecommerce Fraud” found chargebacks and friendly fraud were the top online fraud types that threatened brands and retailers in 2020. Identity theft and bot attacks were other common threats respondents said they experienced.
“Fraud has definitely evolved in this past year,” said Justin Griffin, a fraud analyst at Smashtech. A mutual client of sticky.io and Kount, Smashtech is a direct response marketing firm that manages brands in the health and wellness space. “Friendly fraud has increased year over year. People can have a couple of products that they just say they did not receive, or they can say they canceled their recurring subscription when in fact that is not the case.”
But while some companies like Smashtech can pinpoint specific fraud types threatening their business, other brands admit they need a better understanding of what they are up against. 33% of respondents marked “I don’t know” when asked what types of ecommerce fraud their company experiences.
Many brands recognize the importance of fraud detection, but need more information and resources to mitigate attacks. 64% of respondents said ecommerce fraud protection is “very important” to their business, while 24% answered “important.” Meanwhile, brands and retailers also said lack of internal resources, manually reviewing fraud attempts and tracking chargebacks and friendly fraud were their top fraud challenges over the last 12 months.
So what tools and tactics are brands actually using to fight ecommerce fraud? Card verification value (CVV) and fraud prevention managed services were top answers. Find out other ways brands are currently battling fraud and the solutions needed to protect profits and customers.
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