‘Tis the season for Fraudulent Transactions

‘Tis the season for Fraudulent Transactions

‘Tis the season for Fraudulent Transactions
Blog
Dec 3, 2018

The peak holiday shopping season, which began on Thanksgiving, is upon us – and it’s famous for transaction fraud and cybercrime. Having to deal with hacked accounts, fraudulent purchases, and stolen identities transforms convenient online shopping and irresistible holiday prices into a holiday nightmare for businesses and consumers!

Eye-Openers

  • This year’s Cyber Monday sales are predicted to be the largest in history with over $7.9 billion dollars spent - a 19.7% increase from last year according to USA Today.
  •  This year, according to ACI Worldwide, fraud attempts between Thanksgiving Day and Cyber Monday were set to increase by 14% compared to 2017. This trend of increasing fraud attempts, volume of purchases, and value of fraud attempts is expected to continue throughout the holiday season.
  • As retailers and shoppers are becoming more aware of the threat that cybercriminals pose, the tactics and approaches to steal data and information are changing and growing across channels, especially in-store pickup options and e-commerce sites, according to SecurityIntelligence. Even though consumers and retailers are on alert for the usual signs of fraud, cybercriminals are finding new ways to hack accounts and steal information.
  • According to TechRadar, phishing is still a leading cause of online fraud despite growing awareness for the risks it presents, and mobile fraud is on the rise, representing 73% of all fraud transaction in the third quarter of 2017. As it gets faster and easier to make digital purchases, the opportunity for fraud only increases.

As the holiday shopping season continues through December, Ipsidy has curated 5 tips to help consumers and retailers combat fraud, as festively as possible:

  1. Make sure you use a secure Wi-Fi network while browsing and shopping. Your personal information is at risk and vulnerable when using public Wi-Fi. This is a simple and easy way to feel protected and comfortable while doing your holiday shopping.
  2. Do your shopping on well-established reputable websites. Check the webpage for an indication that your checkout process is a safe transaction, make sure the site you are browsing is encrypted (indicated by the ‘https’ in the website URL), and shop on sites that you trust and have used before. Look for wording or formatting errors as a sign of flawed or fake websites. As a retailer, make sure you are implementing strict and trustworthy security practices on your website.
  3. Create strong and secure login information and passwords and switch up the passwords you use across different sites - cybercriminals can obtain frequently used passwords and hack your accounts in the future. New accounts created online should be monitored by the retailer for flagged delivery addresses or phone numbers or other signs of fraudulent activity.
  4. Be wary of phishing emails! These can appear to come directly from a reputable brand or retailer, encouraging you to take advantage of a sale or discount or give your personal payment information directly. Read emails carefully before following any links or instructions.
  5. Retailers should prioritize using two-factor authentication methods, such as mobile biometrics (facial recognition and thumbprint) or PIN numbers, to combat phishing scams that take advantage of weak consumer passwords. Biometric authentication can ensure that the customer on the other side of the transaction is who they say they are and can eliminate low level fraud attempts.

Ipsidy’s Verified solution is a mobile, biometric multi-factor authentication (“MFA”) solution, that helps enterprises authenticate the identity of the person on the other side of everyday transactions. Give your business and customers a gift this season. Contact our team if you’d like to add biometric fraud protection to your 2019 business plan at sales@ipsidy.com.

Sources:

https://www.aciworldwide.com/news-and-events/press-releases/2018/november/fraud-attempts-expected-to-increase-14-percent-during-2018-peak-holiday-season

https://securityintelligence.com/cyber-monday-2018-5-best-practices-to-protect-consumer-data/

https://www.usatoday.com/story/money/2018/11/27/cyber-monday-sales-7-9-billion-top-record-online-sales-estimate/2123414002/

https://www.techradar.com/news/phishing-scams-account-for-half-of-all-fraud-attacks