While online merchants enjoyed worldwide ecommerce sales that exceeded $1 trillion for the first time ever in 2012, they also were confronted with the challenge of fighting increased fraud.
According to LexisNexis’ 2012 True Cost of Fraud Study, for every dollar in fraudulent activity that a merchant incurred in 2012 the real expense totaled $2.70 – up from 2011’s mark of $2.30. While businesses are more aware of fraud and are taking precautions, persistent and inventive criminals are getting more advanced in their techniques.
So, how can ecommerce businesses fight the dynamic nature of fraud and reduce losses associated with fraudulent purchases? While certainly not exhaustive, here are four important things to watch for in your ecommerce fraud prevention.