Season’s Scammings: Stay Safe from eCommerce Fraud This Holiday Season

With the holidays comes an uptick in eCommerce fraud, which will cost retailers over $20 billion in losses by the end of 2021.

Holiday Shopping is Starting Earlier

55% of consumers will start shopping before Thanksgiving

Holiday Shopping Will Continue to Start Early

The National Retail Federation found that, in 2020, 42% of consumers started holiday shopping earlier than they typically would have in years prior. Sellers started rolling out Black Friday deals in October. This is new tradition is expected to continue in 2021.

Shopping Holidays are lasting longer

Black Friday is expected to be more digital in 2021, as the pandemic still lingers and popular stores such as Target, Walmart, and Best Buy have announced they will be closed on Thanksgiving Day. Also, Cyber Monday has steered away from a one-day phenomenon and has become a week-long event.

Expect an Increase in False Declines

An influx in online orders can mean an increase in false declines. Make sure your fraud prevention strategy isn’t overly restrictive, or you could be turning down good orders. Remember mismatches between the billing and shipping address are expected to increase during the gift-giving season.

Top targets for fraud during the holiday season:

• Electronics
• Jewelry
• Home Goods & Appliance
• Athletic & casual footwear
• Designer clothing + Accessories
• Alcohol & Tobacco

Regular Day vs Holiday Season number of false declines

The State of Fraud Report highlighted several types of attacks that are likely to remain prevalent through the crucial holiday shopping period.

Types of Fraud Attacks to be on the lookout for:

• Account Takeover
• Curbside and buy online, pick up in-store schemes
• Return fraud
• Automated card testing
• Synthetic identities
• Mule fraud
• Promotion abuse
• Unathorized reselling

Other fraud attacks to look out for

Founded in 2014, NoFraud is an eCommerce checkout and fraud prevention pioneer, ensuring every eCommerce merchant has access to the services and protection they need to scale with confidence. The company provides online merchants with cost-effective, easy-to-use solutions that remove friction and fraud from their eCommerce funnel to grow sales and improve the purchase experience for customers. NoFraud provides the industry’s most accurate eCommerce fraud protection solutions to increase merchants’ conversion and approval rates while virtually eliminating fraud. Visit www.nofraud.com for more information.

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