Fraud is often considered as a ” bad word ” that should be rejected out of hand, believing that the company has all the firewalls, internal controls and security devices possible. If the subject can sometimes be perceived as anxiety-inducing, it is not because we fear it that we get rid of it…simply by ignoring it.
Sandrine Vella
Payment and Fraud Manager
State of payment fraud – Trends and insights
The pandemic has played a key role in the evolution and scale of payment fraud in 2020. In addition, the ongoing disruption in the e-commerce industry has also highlighted the strength of the fraud economy and the danger it represents to businesses. More than a generic term for online crime, it is a sophisticated network of active cybercriminals with access to everything they need to exploit online businesses and operates on the same basic principles as the industries it affects.
Consequently, fraudsters are as familiar with the mechanics of digital commerce as the merchants they target. They can accurately identify security holes and know how to use a merchant’s success against them. Last year, Internet traffic increased by 50-70%, and online shopper expenses nearly doubled. Fraudsters took advantage of the increased transaction volume and unanticipated consumer behaviors to increase the average value of fraudulent purchases.
Fraud attacks doubled in 2020 as COVID-19 transforms the digital economy
Source: Arkose Labs
Fraud Rates by Industry
Source: The Paypers
Three steps to combat fraud
Handling Chargebacks and Fraud solution
According to Victor Iezuitov – Nexway’s CEO, not every chargeback request is a fraudulent one. Of course, they are necessary, especially in a digital world where fraudulent activity is becoming more common.
There are ways to fight chargeback culture, hold onto your profits and keep customers happy at the same time. Taking away the faceless nature of your online activities can also reduce chargeback requests. Creating an online customer service policy through avenues such as social media channels can again go a long way to improving customer satisfaction and reducing chargeback rates.
Gaming INDUSTRY and Chargeback Fraud
As mentioned previously, gaming platforms are increasingly attracting fraudsters. Why? Because they store many payment receipts, allow relative anonymity, and are not subject to regulatory requirements and KYC (Know Your Customer) checks.
Some of the most common chargeback requests those in the gaming industry face are:
What is your organization doing to protect itself from fraudulent activity? Start securing your payments today! Take the necessary steps to reduce financial losses, preserve customer and brand reputation while maintaining the organization’s efficiency. Focus on your core business and offload the responsibilities of payments, collections, compliance, and fraud.
Don’t try to fight fraud alone. Let Nexway help you. Contact us today to learn more.
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