Most of the world’s e-commerce merchants will be hiring new fraud specialists this year after being plagued by fraud over the past 12 months, said Ravelin.
An anti-fraud vendor surveyed 1,900 global fraud experts working for companies with over $50 million in annual revenue. 2023 Global Fraud Trends study.
It revealed that 59% documented an increase in online payment fraud, and just over half (51%) said the same about account takeover.
Similar percentages noted a spike in promotion fraud (52%) and refund fraud (53%), with 40% saying they were experiencing an increase in customer or friendly fraud. I answered. More than half of UK respondents (52%) say friendly fraud is on the rise.
Read more about e-commerce fraud: Global e-commerce fraud to exceed $25 billion by 2024
As a result of these trends, most online merchants in the UK (58%), Germany (80%), US (72%) and Australia (86%) plan to expand their fraud teams this year, Ravelyn said. claimed.
When it comes to technology investments, machine learning-powered tools and two-factor authentication (2FA) are particularly popular. Nearly half (48%) of UK businesses agree that machine learning is one of their most effective tools for him, and three-quarters of his distributors agree with him on 2FA. says.
Machine learning algorithms can be trained to observe “normal” transaction patterns, allowing them to better spot trends that the human eye would miss that could indicate suspicious activity. It also has the added benefit of taking the pressure off teams of humans who operate 24/7 and investigate suspicious activity flagged by machines.
But Ravelin argued that most companies use homegrown solutions, which are expensive to maintain and difficult to scale, and the companies may be gearing up for decline. I warned you there is.
“Businesses need to get ahead of fraud management by leveraging automation to nip fraud in the bud,” argues Ravelin CEO Martin Sweeney.
“Improved automation will increase the size of our team, free our fraud investigators from their day-to-day duties, inform product development, identify other sources of profit erosion, and other more important strategies to drive growth. With the economy in uncertain times, enabling growth must become a priority.”
