Holiday season will see highest rate of fraud.
Americans are expected to spend USD7bn online between Thanksgiving and Cyber Monday. However U.S. e-commerce merchants will lose USD63m if not more over the five day period due to online fraud according to online anti-fraud innovators Trustev.
The holiday shopping season is the busiest time of the year for fraudsters. Card scams, return scams, and fake identities contribute to hundreds of millions in losses for retailers. The volume of transactions occurring online during the holiday period means that while awareness is heightened, many retailers, banks, and credit card companies are forced to relax their security and fraud protection in order to cope with the huge amount of card payments. It is thought that up to 9% of all transactions will turn out to be fraudulent.
At a busy period like the holiday season, retailers will miss much of the fraud activity which occurs as this will only become apparent after the year-end when customers start receiving their credit card statements.
Trustev, the anti-fraud technology provider, focuses on identifying the individual attempting to make a purchase before any card details are even submitted. Trustev’s solution verifies the shopper’s identity prior to the payment process without slowing down the checkout process.
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