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Nearly half of retailers faced fraud rise amid pandemic

The expanding e-commerce has caused a rise in most types of fraud, online fashion retailers claim

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Nearly half of retailers faced fraud rise amid pandemic. Source: pexels.com

According to Ecommerce News, 1 in 3 fashion retailers has experienced more online payment fraud, while 44% have experienced a rise in account takeover and promotion abuse.

COVID-19 has led to a boost in e-commerce. But this in turn has led to a rise in almost all types of fraud in the online fashion industry.

The research by Ravelin shows that 32% of fashion retailers saw an increase in online payment fraud over the past year, while nearly half have experienced a rise in account takeover and promotion abuse. Additionally, 38% saw an increase in friendly fraud, while 54% saw the amount of refund abuse grow.

Among fashion retailers these shares are higher than among any other type of retailer, the report explains. One of the key reasons for the growth of refund abuse might be that more consumers are ‘wardrobing’, purchasing clothing online for the sole purpose of taking photos for social media, before returning them.

The conditions of the pandemic have created a veritable petri dish for the growth of fraud. Retailers are scrambling to drive e-commerce and are handling extremely high volumes of transactions online, while also trying to fulfill a growing number of online deliveries
Mairtin O’Riada, co-founder and CIO at Ravelin

We’ve reported that Zalando expands its pre-owned business across new European markets.

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