New Year, New Fraud: The 5 Types of Fraud to Watch

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Promo and Coupon Abuse

If you offer coupons or promotional credit for shoppers to invite friends, you may be opening yourself up to promo code abuse. Whether it's a sale deal or a loyalty code for inviting friends, abuse of these promotions loses you money –– if you offer $5 in-store credit for every friend that a shopper refers, a fraudster can create hundreds of fake email addresses, and gather all of that free credit on your site.

The good news: It's a great time to be an online retailer. In fact, this year's Black Friday saw a record number of online shoppers. For the first time in history, online sales exceeded transactions in brick-and-mortar shops.

The not-so-good news? More fraudsters than ever are targeting online businesses. Credit card fraud attempts grew from 2014 to 2015, and thanks to the October EMV rollout that makes physical credit cards much harder to counterfeit, experts predict that more criminals will move online. When examining the numbers from other countries that implemented EMV cards, retailers saw exponential growth in online fraud in the following years, increasing anywhere from 30 to 60 percent.

So, what can merchants operating online do to prepare for the inevitable flood of shoppers, both good and bad? Knowing how to spot the suspicious shoppers is key. In this slideshow, Jason Tan, CEO and co-founder of Sift Science, and Emily Chin, market manager at Sift Science, have pulled together the most common types of fraud that you might encounter.


Related Topics : SharePoint, Web Video and Voice Conferencing, UK, MySpace, Intranets

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