Fraud Threats Adding to Black Friday’2017 Mayhem
Future Looks Grim With Data Breaches
While organizations wrangle over the chaos of holiday shopping orders, fraudsters look for loopholes in cyber-security. The rise in fraud attributes to an upsurge in data breaches, affecting millions of businesses. Data breaches are inevitable during the holiday season, making organizations vulnerable to constantly rising cyber-attacks.
Fraud Threats Adding to Black Friday Mayhem
Retailers expect sales to make up more than two-thirds of their total holiday sales. They need to be more vigilant to ensure that they are not letting criminals steal their profit. In order to meet increasing consumer demands, various merchants create a checkout process that is fast and streamlined. This may lead to a compromise of security measures thus increasing the CNP fraud rate.Account takeover is a predictable way taking which e-commerce fraud begins. With automated bots, fraudsters compromise thousands of accounts and gain access to legitimate ones. During this frenzy spending season, financial institutions need to act proactively as card fraud and identity theft is expected to increase. According to a report, a 20% rise in online retail card fraud was observed during the 2016 holiday shopping time. Moreover, phishing links lead to fake login pages, prompting consumers to enter their personal credentials. The user assumes to have logged into an authentic website but that isn’t the case. The skimmers steal customer’s username and password.
How to Prepare for Black Friday Fraud?
The escalation in sales is inevitably followed by an increase in the potential for fraud. So how organizations combat fraud without compromising on consumer experience?Businesses must roll out stringent fraud detection and prevention solutions to flag fraudulent transactions. During holidays, there is a high risk of false declines and costly chargeback adversely affecting the merchants. Implementing a multilayered approach to fraud prevention and chargeback management will ensure frictionless shopping experience. Quatrro’s behavioral analytics with an additional layer of human eye review will make this Black Friday a happy Friday for merchants and financial institutions.
Originally published at www.quatrroprocessing.com on November 24, 2017.