Each year, during the holidays, fraudsters plan how best to use the season for theft. There were three important things to take into account with regard to fraud during the holiday season in 2016. The fact is that fraud is rising, it’s going mobile, and may result in poor customer experience.
First, online fraud has been on the rise in the past year. It was expected that online fraud would increase after the date of EMV liability shift. Fraudsters knew that card-present fraud would become more challenging, so they had to move ahead of their “competitors.”
According to the Global Fraud Attack Index, online fraud attacks in the United States grew 26% in the 2 quarters after the October deadline date. The number of merchants having switched to EMV has risen and the number of fraudsters having moved online as well. So merchants have to be careful during the holiday season.
It is highly important for merchants to apply to a reliable payment processor like emerchantbroker.com for secure payment processing. EMB is the #1 high risk processor in the United States and has an A+ rating with the BBB. EMB is rated A by Card Payment Options and is one of Inc 500’s Fastest Growing Companies. EMB offers the best fraud prevention and protection programs in the industry.
Second, according to Aite Group, the growth of online commerce market is becoming more and more based on mobile retail commerce. Ecommerce is on the rise and the mCommerce is growing more rapidly. Unfortunately, mobile creates more options for fraudsters as compared to other channels.
During the 2016 holiday season, more fraudsters started looking for more opportunities presented by mCommerce. It became important for retailers not tracking fraud by channel to start doing so without losing time. As for retailers who were tracking fraud by channel, they had to work to track and understand holiday mobile norms for good and bad customers.
Third, during this holiday season, retailers had to focus on speed and increased accuracy. Speed requires extensive automation to avoid the delays brought about by manual reviews and provides smooth shopping experience. A high level of accuracy results in excellent customer experience as it helps good customers avoid being caught in the net and rejected and also fights fraud effectively.
Retailers should perfectly know all aspects of their website and the way customers interact with it so to prevent fraud without ending up with poor customer experience. They should also be well aware of the payments ecosystem and how fraudsters can use it. Finally, retailers should put all these together to stop fraud when providing seamless experience for good customers.