Fraud experts at eBay Enterprise released the results of the omnichannel commerce provider’s Holiday Fraud Index, which shows that criminals are evolving the methods in which they take advantage of holiday season spending.
Not only is the number of fraudulent purchases increasing, but as sales peak during the holidays fraudsters are deploying more creative ways to steal.
“The holiday season brings twice the stakes for fraud, as retailers see a spike in order volumes, alongside an increase in fraudulent attacks,” Michael Graff, risk manager at eBay Enterprise, said in a press release. “Businesses must be mindful to not give into strategies that are overly cautious and end up killing good orders, but instead craft a fraud management plan that balances automated intelligence with the benefits of human supervision.”
Through its research, eBay Enterprise’s Fraud Technology Lab discovered that fraudsters will do whatever they can to ensure their criminal activities go unnoticed alongside orders from legitimate consumers.
“There is no question that managing online fraud is a top imperative facing retailers today,” eBay Enterprise President Tobias Hartmann explained. “Ensuring the right mix of automated and manual review is essential, but can be difficult for businesses to navigate on their own, as we’ve seen criminals try to find weak spots in fraud prevention by bombarding retailers with attacks. Many fraud management strategies employed by retailers can cause more harm than good, stressing just how important it is to partner with a trusted resource.”
The company’s Fraud Technology Lab also debunked several fraud myths to help retailers and brands boost holiday sales and keep customers happy during this festive time of year.
One of these misconceptions is that digital gift cards are too risky to sell, but eBay Enterprise’s Fraud Technology Lab explained that while this payment method may seem intimidating for retailers they are still extremely popular among customers and the volume of good orders outweighs the fraudulent attempts.
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