With Increased Online Spending, Fraud Risk Also Jumps

With more than 2 billion people buying products or services online, consumer spending is increasing. Frost & Sullivan found that U.S. e-commerce is projected to reach $700 billion by 2023.

But the associated risk of fraudulent activities in e-commerce propels merchants to seek fraud prevention strategies in-house or with external parties. Frost & Sullivan’s latest white paper, “An (Un)Necessary Tradeoff: Fraud Prevention Strategies Should Enhance not Compromise Customer Experience”, discusses how e-commerce merchants can gain data efficiency and organizational visibility by partnering with an expert. This white paper also highlights challenges for merchants in customer verification and identifies cybersecurity solutions to mitigate the risks of online fraud.

“In-house systems are typically dependent on manual reviews, which are time-consuming, difficult to scale, costly and prone to human error,” said Roberta Gamble, partner and vice president at Frost & Sullivan. “Using a vendor with a large and thorough database can be a better option as these providers can aggregate customer data across multiple retailers. A retail customer may have a digital history that can be verified against this database, even if the retailer itself has never interacted with the customer.”