Fraudsters make it their mission to find merchants’ weak points along the customer journey. The following, are among the most frequent types of fraud to be aware of:
ACCOUNT TAKEOVER (ATO)
Fraudsters gain access to customers’ account information using hacks or bots and start buying. Telling signs include multiple failed login attempts, or logins from different devices or locations within the same network. According to Forter, ATO’s rose by 31% in the past year.
DISCOUNT AND COUPON ABUSE
Taking advantage of special discounts and coupons is an easy way to make money illegally. Look for repeated reuse of discount codes and similar email patterns, which indicate a fraudster is creating multiple emails to exploit referral discounts. The Coupon Information Corporation estimates this type of fraud “costs consumer product manufacturers hundreds of millions of dollars every year.”
Return abusers often return stolen merchandise or frequently return the same type of item. Return abuse is complicated, retailers must ensure not to block good customers from returning unwanted goods. In 2017, Forter charted a 119% spike in return abuse directly following Cyber Monday.
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