“Retail fraud attempts double year-over-year and triple since 2017,” reveals a new report from LexisNexis.
As retailers expand their horizon for payment methods, the bad actors also conjure up new techniques of hacking. In fact, the attacks have become so prevalent that the cost of each dollar of fraud losses is up 6.5% over last year, across retailer types, while the cost per dollar of fraud is up to $3.13 from $2.40 in 2016.
According to another recent report, the retailers are expected to lose about $130 billion in revenue on fraudulent transactions between 2019 and 2023. It is also anticipated that digital goods will be prone to the most fraud and see a significant increase in them as well.
The report also signifies that the increase in fraudulent activities on the purchase of digital good is the lack of information required for their purchases. However, adding some friction to the payment procedure of buying digital goods may reduce fraud activity.
Moreover, tools for authentication during the purchase of both digital and physical goods can also help the retailers overcome the ‘hackers’ illicit method. The reports also suggest that verifying simple and basic information such as name, address, credit card CVV code and date of birth through various methods may make the process longer but in the long run help reduce fraud.