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American retailers are facing a 350% rise in fraud pressure

This dynamic period of fraudulent activity is a steady state of the new normal

retail fraud

American retailers are facing a 350% rise in fraud pressure. Source: shutterstock.com

According to a report released by Signifyd, US retailers will face a new era of online fraud this holiday season with more numerous, more automated and diverse attacks in terms of methods and targets.

In fact, Signifyd’s 2021 Fraud Report recorded a 146% increase in automated fraudulent attacks in 2020. Also, data predicts a doubling of the number of consumer abuse, including false claims that the order never arrived, in H1 2021. It may also raise the pressure of fraud by 350% – orders are deemed to be fraudulent – by mid-2021.

Particularly, the fraud report highlighted several types of attacks that have undergone a transformation and are likely to persist during the crucial period of holiday shopping and beyond. These include innovation or increase in:

  • Account takeover
  • Curbside and buy online, pick up in-store schemes
  • False item not received claims
  • Return fraud
  • Automated card testing
  • Synthetic Identities
  • Mule Fraud
  • Promotion abuse
  • Unauthorized reselling
In our recent Global Payment and Risk Mitigation Survey, the majority of merchants surveyed reported increases in synthetic and account takeover fraud over the previous year. As these and other new fraud trends emerge, the safeguarding of a merchant’s revenue requires smart, dynamic protection against fraud throughout the payment lifecycle
John Winstel, global head of fraud product at FIS

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