Today’s PaymentsNEXT news roundup is focused on fraud. As e-commerce grows so is fraud. We’ve got highlights of the latest fraud stats, trends in global e-commerce fraud, fraud solutions, chargebacks, and much more. If you’re following fraud news, dive in and get yourself up to speed.
Anti-fraud niche in payments thrives as e-commerce climbs
The headroom may be a bit more crowded these days, filled with companies trying to verify identities and secure all sorts of payments, from paychecks to unemployment benefits. Services such as telehealth and payroll are undergoing rapid digitization and that is increasing the number of industries seeking secure payments. Many companies are trying to enable faster money transfers and tout the availability of funds as a selling proposition, but this is creating risks that must be addressed by technology. Read more…
Global Payment Fraud Statistics, Trends & Forecasts
Global losses from payment fraud have tripled from $9.84 Billion in 2011 to $32.39 in 2020. Payment fraud is expected to continue increasing and is projected to cost $40.62 billion in 2027 – 25% higher than in 2020. Here’s the latest research on payment fraud and broken it down by geographic location, type, financial impact, and prevention measures. A useful snapshot and quick reference from Merchant Savvy. Read more…
Total identity fraud losses soar to $56 billion in 2020
While total combined fraud losses climbed to $56 billion in 2020, identity fraud scams accounted for $43 billion of that cost. Traditional identity fraud losses totaled $13 billion. The reduction in transaction activity in 2020, combined with financial institutions’ more robust anti-fraud measures, made it harder for criminals to succeed in their usual fraud activities. They opted instead to interact directly with their fraud victims via identity fraud scams. Read more…
Low-risk instant payments – the approach of the fraud detection solution matters most
With the introduction of the SEPA Instant Payment procedure, banks have been able to significantly increase the user-friendliness of their transfer procedures. However, the service is associated with an increased risk of fraud. Fraud detection solutions can help minimize this risk. But not all solutions are the same. Different approaches are being taken. And not all of them can keep up with the constantly evolving attack patterns of fraudsters. Read more…
Retailers, consumers don’t see eye to eye when it comes to e-commerce fraud
While nearly 40% of retailers strongly believe they are doing everything they can to prevent fraud, only 20% of consumers feel the same way. 82% of US and EU retailers reported an increase in fraud attacks since the beginning of the pandemic with promo abuse and account takeover as the most common fraud types identified. More than a quarter of retailers said fraud has significantly impacted their profitability. Read more…
Open finance will reshape the relationship between banks and their customers
Open finance extends the third-party access principles of open banking across a wider set of financial products such as mortgages, loans, investments, and pensions. It is part of a global trend toward open data and data portability and will enable wider integration across nonfinancial industries, including sectors like healthcare, retail, and government — as well as broadening the range of third parties that will compete or intermediate financial relationships. Read more…
State of the Industry Report on Mobile Money – 2021 Summary
In 2020, the number of registered accounts grew by 12.7% globally to 1.21 billion accounts – double the forecasted growth rate. Meanwhile, the number of customers using their accounts on a monthly basis grew even faster. There are now over 300 million monthly active mobile money accounts. The industry is processing over $2 billion a day. Mobile money services can now be found in 96 countries worldwide. Read more…
BOPIS fraud attacks took center stage during pandemic, says report
While online sales exploded, retailers reported the greatest increase in fraud occurred in omnichannel environments like buy online, pick up in-store (BOPIS). Nearly 39% of retailers identified BOPIS as the area where they found the greatest increase in fraud, compared to only 19% last year. The share of retailers reporting online as the channel in which fraud increased the most held steady at around 26%. Read more…
Consumer dissatisfaction with credit cards continues to rise
Customers across the board bristled at reductions in their credit limit precisely at a time they most needed access to their cards as a source of funds because of the impact from the deadly COVID-19 pandemic. Overall, 2% of cardholders said their limits were reined in by the card companies. For midsize customers, the figure was 4% during the last part of the 2021 study, covering May and June. Read more…
The chargeback system is broken: Here’s how it can be fixed
According to one widely cited study by the Aite Group, chargebacks will grow from $23 billion in 2018 to $35 billion in 2021.1 Complicating the surge is that as many as 80% of chargeback cases are “friendly fraud” – unjustified requests knowingly and intentionally submitted by cardholders to cheat the system. These claims are quite problematic; they cause significant delays to the processing of legitimate claims. Read more…
Blackhawk Network introduces scan-to-buy live entertainment and amusement ticket purchasing in US retailers
Blackhawk is leveraging its proprietary ScanIt solution to enable QR ticket purchasing in retail. This QR code technology enables merchants to engage with customers at multiple touchpoints within the physical retail environment. Consumers can now simply scan QR codes in-store to purchase e-tickets to some of their favorite experiences and attractions and have the option of paying with cash, cards or digital payments. Disneyland has partnered with Blackhawk to offer QR code ticket sales. Read more…
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