Study: Online retail fraud attacks on the rise
CSA - Chain Store Age
Attempts to defraud online retailers have increased for the second year in a row, with food and beverages and online electronics seeing the biggest increases.
That’s according to the 2019 Fraud Attack Index from e-commerce security company Forster. By analyzing merchant and transaction data, Forster determined the rate of increase in fraud attacks against online retailers in several different verticals during 2018, as compared to 2017.
A brief recap of results in several key verticals, as well as analysis of popular fraud mechanisms, follows.
Food and beverage
Attacks against online food and beverage businesses (including restaurants, delivery services and retailers in this industry) increased 79% in 2018, following a 60% increase in 2017. According to Forster, fraudsters often initially test stolen cards or e-wallets on lower-priced online food and beverage purchases before attempting higher-ticket purchases elsewhere.