According to an analysis by Banklesstimes, the emergence of e-commerce has increased the possibility of fraudulent activity. An increase in online transactions has occurred due to the Covid-19 crisis. The pandemic has presented scammers with a whole new opportunity to defraud users.
“The number of victims is decreasing. The restoration of normality after Covid-19 could be a factor,” said Jonathan Merry of Banklesstimes, in a statement.
“Retailers are also cautious, making it difficult for fraudsters to pull off their scams,” Merry added.
In 2021, online retailers around the world have fallen victim to various fraud schemes. But the “friendly fraud” scheme was by far the most common. Customers were buying goods online and then filing complaints with their banks, claiming the sales had not taken place. They did this to get their money back fraudulently.
Countries in Latin America and Asia-Pacific had the highest number of fraudulently accepted online orders. These targeted online retailers didn’t know that.
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Due to the presence of fraudsters online, the urge for online retailers to deal with these attacks has never been stronger. So far, more than nine out of 10 entities believe they need to work on e-commerce fraud to be successful.
About three-quarters of online merchants globally reported a net increase in fraud attempts since 2019, according to the report.