Black Friday and Cyber Monday approach! Saryu Nayyar, CEO at Gurucul, discusses concerning statistics about skyrocketing online fraud during the festive season.
As the holiday shopping season gets into full swing, merchants aren’t the only ones expecting to have a prosperous year. Fraudsters, too, are out to grab their illicit share of the money changing hands (or accounts) in the weeks ahead. Especially susceptible to theft by fraud are millions of e-commerce merchants who are unprepared to identify and stop the bad transactions that should never be completed.
The COVID-19 pandemic has driven e-commerce to new heights. According to the U.S. Department of Commerce, the highest annual e-commerce growth rate in two decades occurred in 2020, when online sales experienced a year-over-year increase of 32.4 percent. The growth rate for 2021 is projected to be “only” 17.9 percent. That’s the good news. The bad news is, when more purchases are made online, the opportunities for fraud grow as well.
Looking back at the 2020 holiday shopping season, TransUnion reports the days with the highest percentage of suspected fraudulent e-commerce transactions were:
You read that right. More than a quarter of all e-commerce transactions on Cyber