From: RegTech Analyst
Losses from false declines is expected to reach $443bn by 2021, according to a new report from anti-fraud company ClearSale.
The report, The E-Commerce Conundrum: Balancing False Declines and Fraud Prevention, is based on a study of 100 US-based e-commerce executives whose companies earn annual revenues between $100m and just under $1bn.
In the document, the company explores the growth of card not present (CNP) fraud and false declines in e-commerce. It also explores the impact on customer behaviour and offers strategies for lowering fraud and false declines.
One of the key findings of the report is that 62% of merchants say their false decline rates are increasing. Losses due to e-commerce fraud are estimated to hit $6.4bn by 2021; however, losses caused by false declines is expected to reach $443bn by 2021.
ClearSale EVP Rafael Lourenco said, “Merchant education tops our list of priorities, especially in a time when the e-commerce industry is seeing spikes and drops like never before.
“This report allows merchants to understand the risks of false declines and how to monitor for them, plus it describes the various fraud-security layers and when to apply them. It has never been more important for a retailer to protect themselves, reduce fraud losses, retain good customers and stay afloat in this torrential time.”
The full report can be read here.
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