Study: Online Fraud Attempts Up During COVID-19 Crisis

Fraud attempt rates in online retail reached 4.3% in April, slightly down from 5.3% in March but still up from 3.8% compared to the month last year, according to ACI Worldwide.

Attempted fraud is focused on those segments that have seen high sales growth, such as consumer electronics, with the average ticket price of attempted fraud up $26. Buy online, pick up in store was a function that suffered a rise in attempted fraud. The transactional value of attempted fraud rose by 9.9%, the payments firm stated, reflecting fraudsters’ continued emphasis on popular high-value items, which extends to laptops and TVs.

Chargebacks for non-fraudulent reasons rose by 25% through the end of March as merchants face challenges in processing refunds, staffing call centers and delivering services. Merchants are aggressively working to lower chargeback volumes and related costs as they try to improve the dispute experience for consumers.

“Fraudsters continue to use the disruption to the status quo to target unsuspecting consumers and unprepared businesses,” stated Debbie Guerra, evp/ACI Worldwide. “While vigilance is paramount, merchants also need to ensure that they are scrutinizing their fraud strategies to quickly adapt to a highly dynamic new retail environment.”