Due to a large spike in all forms of online fraud during the pandemic, retailers around the world are beefing up their fraud teams and budgets, according to a research findings by Ravelin.
72 percent of global retail brands plan to expand their fraud detection teams in the coming year, while 76 percent expect to raise their fraud budget in the coming year — with 20% expecting a “big” increase.
As the pandemic has moved a large portion of sales to ecommerce in the face of physical store closures across the world, this emphasis on fraud detection teams has been motivated by spikes in online payment fraud, account takeover, refund abuse, and promotion abuse.
Online payment fraud is the greatest fraud concern for nearly 40% of fashion and FMCG retailers, while refund theft, where customers falsely say they never got a product they purchased online, has increased for half of them. Account takeover has increased for 45 percent of retailers in the last year, mostly as a result of password reuse through several retailers.
These results are part of a retail study based on the views and experiences of 1,000 fraud and payments practitioners from major online retailers around the world.