Loyalty fraud has seen a sharp rise in 2019, with the number of incidents increasing by 89% compared with last year.
The findings come part of Forter’s seventh Fraud Attack Index and highlights shifting behaviours of online businesses.
Last year’s report found that fraud was rapidly evolving, and the new research has found the total dollar amount of online fraud has increased by 12% year-over-year.
One of the rising trends is that fraudsters are having more success in account takeover attacks. Around 1.5 million of those whose accounts were already compromised had additional accounts opened in their name.
Fraudsters transfer funds to these accounts from their victims’ legitimate accounts.
Forter has also found buy online and return in-store fraud rose by 23% and buy online and pickup instore fraud increased by 23%. Coupon abuse also went up by 10%.
Forter CEO and co-founder Michael Reitblat said, “Merchants need to respond by implementing a continuous and automated approach that assesses events throughout the entirety of the customer journey.
“It’s no longer sufficient to focus solely on chargebacks and credit card fraud at the point of transaction. Only a fully integrated fraud prevention platform will enable merchants to address fraud in a holistic and accurate manner across the entire customer journey.”
Copyright © 2019 FinTech Global