The biggest threat to retail sales growth. Successful merchants deploy machine learning fraud detection to validate transactions, authenticate customers’ digital identities, and deliver a fraud risk score in real time. Typically, 95% to 98.5% of transaction attempts are from real customers. Our site uses cookies so that we can remember you and understand how you use our site. This is one of the biggest disadvantages of online shopping. 1. https://www.merchantfraudjournal.com/ecommerce-fraud-trends-2019/. There is no single reason, but the rise and rise of online shopping is thought to be a major factor in the decline of the “high street.”. Large retailers are becoming prime targets for ransomware, for if the hackers capture and encrypt enough sensitive data, companies are forced to pay significant ransom fees to get the data back. Stephen Covey addresses the concept of Backwards Planning in his famous book,The Seven Habits of Highly Effective People, as “Habit #2 – Beginning with the End in Mind.” Covey states in his book, “To begin with the end in mind means to start with a clear understanding of your destination. What’s more, DDoS [distributed denial of service] attacks targeting retail sites are increasing, along with complexity of the attacks. Articles, Business Law Articles; As more and more companies sell things online, especially to far-flung customers, it can be difficult to keep track of the ever-changing legal rules that apply. If you have a complaint about our use of your information, we would prefer you to contact us directly in the first instance so that we can address your complaint. One of the other major barriers to e-retail is the ecosystem barrier. I was recently asked if I could come up with a list of threats to online retail businesses – not just the obvious ones, but anything that might have a knock-on effect and is therefore potentially worthy of retailer consideration. Accessing and Correcting Your Information: ” Magecart and other threat actors are … While web performance is critically important, security is also a vital area of focus and investment because threat actors don’t take holidays. Tied at 38 percent were increasing customer loyalty, improving personalization and improving user experience (e.g., navigation, speed and responsiveness). Once received, this data allows the criminal to proceed with identity theft. They’re always out on the internet probing sites, looking for vulnerabilities and ways to steal data or take over sites. Everyone recognizes it’s important to protect customer personal data such as credit cards as well as transaction information; not everyone equates degraded site performance with a high-volume of bot attacks that prevent legitimate customers from visiting and transacting on a site. Today, it's almost economic suicide for any retailer not to be able to sell online. Here’s a look at just some of the issues on the horizon that online retailers … First, retailers need to realign their value proposition to incorporate digital. This information is critical to online retailers seeking to prepare for peak traffic demands as well as protect against threat actors. Fake Online Stores. 7. However, before you enter the world of e-commerce, be familiar with the advantages and disadvantages of selling online. Chris Wraight, director of industry marketing, Akamai. Singles’ Day 2 is a much smaller event than Singles’ Day 1, but the fact that it is firmly in the prime Christmas and Boxing Day shopping timeframe (Dec. 12) is the most likely explanation for its high number. Learn more about our fraud prevention platform, and how we can help protect your business. During the same day, Akamai processed hundreds of billions of API requests, hundreds of millions of dollars in ecommerce transactions, and trillions of internet interactions overall. But in truth they too are always present as this major online retailer recently discoveredthey were infiltrated from late September to November. Online retailing is growing at an astonishing rate, with online sales now accounting for around one quarter of the total retail market. Looking at the assorted web application attacks, the number of attacks on Christmas Day were comparable to Cyber Monday, with the exception of cross-site scripting, which was five times more than Cyber Monday and two times more than Black Friday. Operationally, online retailers need to plan far in advance. Undoubtedly one of the biggest high street threats for many independent retailers is the rise of online shopping, or ecommerce, which continues to grow in popularity. Your Rights as a Data Subject: If this trend continues unabated, many shopping centers will be left facing formidable challenges. Ongoing education and an understanding of ecommerce fraud are of utmost importance, so you can protect your business assets. According to the report, 68% of breaches took months or longer to discover, even though 87% of the breaches examined had data compromised within minutes or less of the attack taking place. If you make one improvement to your risk management program this year, partner with Fraud.net and the 1000s of other companies in the network. which happens when the criminal sends an email to an individual, but it appears to be coming from their bank or other financial institution. But in truth they too are always present as this major online retailer recently discoveredthey were infiltrated from late September to November. An ideal fraud prevention solution efficiently completes these “good” transactions while rejecting “bad” ones, and enabling merchants to manually review those that, based on fraud scores, are “in-between.”, https://www.merchantfraudjournal.com/ecommerce-fraud-trends-2019/. This means that application developers need to consider both environments when designing new applications, but native mobile apps are certainly the future. 8 Biggest Threats of Online Shopping Fake Online Stores. All this focus on mobile CX can’t come at the expense of still providing an optimal desktop CX. The wide variety of threat vectors makes it vital to have a broad range of security protection in place. Note the data presented about the conversion differences between Android users and iOS users; having this detailed information and adjusting your web application for it could help to boost Android conversion rates. It’s one thing to plan for peak traffic that could occur at any time, versus being prepared for security attacks that do occur at all times. In a world in which fraudsters have hundreds of tactics for committing ecommerce fraud, Fraud.net enables merchants to approve more transactions while reducing fraud with advanced, AI-powered fraud detection, case management, data mining and visualization. According to Nexus, the “state cannot obtain tax jurisdiction over a retail until there’s a physical connection between the two”. As we, along with others, have seen throughout 2018, online retailers need to be “mobile first” in their approach, with the objective of providing the most optimal CX for mobile users that they can. AI, specifically machine learning algorithms, are tuned with merchant data and consortium data to identify the “signals” indicating an ecommerce transaction is actually a scam. Attn: Legal Department And even though we saw spikes of increased attacks during the known holidays, in reality they are out there every day probing your site for weaknesses and openings. SUMMARY The shopping center industry estimates that online retail sales will more than double over the next 10 years and thus pose a substantial threat to the industry. They are however, keenly aware of holidays and what that means for increased online activity so they have extra focus on these days. Credential stuffing attacks were high over the seven holidays we are reporting on. It refers to sales tax associated with an online sale. On that day, the volume of data being delivered across the Akamai network exceeded 72 terabits per second, surpassing the 70 Tbps threshold for the first time in the company’s 20-year history. Following a string of fraudsters, such as … Join this elite group to protect against fraud that you haven’t even seen yet. Credential abuse/stuffing attacks (in which criminals use stolen personal data of consumers to try to commit fraud) closely echo retail-specific bots, with the exception being Singles’ Day 2. When the owner of the card notifies their credit card company about the stolen card, the business that sold the goods is responsible for reimbursing the credit card company. Cybercriminals set up fake shopping platforms to trick users into wasting money or revealing sensitive data. Akamai provides content delivery network services to 354 of the Top 1000 online retailers in North America. Threat actors don’t take holidays. A useful technique in consulting and project management is referred to as Reverse Planning. Here’s a look at the emerging cybersecurity threats that affect online retailers today… Supply chain attacks – No direct access to retailers’ systems needed! That’s because roughly 88 percent of U.S. online adults use a smartphone, 45 percent use a smartphone at least once a month to research products before making a purchase and 28 percent use a smartphone at least once a month to purchase physical products. Wycliffe House If we are processing your personal data for reasons of consent or to fulfill a contract, you can ask us to give you a copy of the information in a machine-readable format so that you can transfer it to another provider. E-commerce offers many ways retailers can reach consumers and conduct business without the need for a brick-and-mortar storefront. You have the right to ask us to stop using your information for a period of time if you believe we are not doing so lawfully. Get access to essential strategic content, in-depth reports, industry intelligence, and exclusive data. Inside Retail: With Forrester recently revealing that brands have struggled to meet customer … which is similar to credit card fraud but involves the fraudster intentionally making an overpayment, then following up to request a refund to a different payment method. Transactions like this fall to the responsibility of the online marketplace business. These... Credit Card Fraud. The world is changing at a rapid pace, with everything from global warming to shopping trends affected.So what does this mean for the apparel industry?What challenges are we facing in the next couple of decades? New York, NY 10001 There are three priorities for retailers wishing to counter the threat from e-commerce players such as Amazon and Alibaba. Growth may grind to a halt and some centers may also see a drop in sales. New threats to online retailers 09/06/2016 09/07/2016 by Report from Counsel As more and more companies sell things online, especially to far-flung customers, it can be difficult to keep track of the ever-changing legal rules that apply. Part 1 in our blog series Threats For Online Retailers . By 2023, Forrester expects smartphones to influence $1.4 trillion in sales.”. Common Ecommerce Security Threats & Issues. Having a contingency plan is also advisable. The internet is full of fake online stores that trick people into purchasing fake products. 2. Online retailers can increase their sales and profits faster than a brick and mortar establishmen… These threats can be crucial to the retailer’s survival in the marketplace. This entails testing from highly distributed locations to simulate global spikes as well as pushing applications to the limit, all well in advance. E-commerce threats and opportunities. (Fraud.net offers. They use the error message(s) returned by the website to pinpoint the correct credit card details they need to accomplish one of the other types of fraud. Regarding the higher Diwali number, as with the session traffic, this represents a period of time over multiple days, versus a single shopping day. Credential stuffing attacks were high over the seven holidays we are reporting on. However, you can also contact the Information Commissioner’s Office via their website at www.ico.org.uk/concerns or write to them at: The lower number for Cyber Monday is intriguing; a possible explanation is that threat actors are becoming smarter and more focused in their attacks, only using the more profitable types. This is the most common type of fraud. A BigCommerce research study found that 78 percent of online shoppers want more images and 30 percent want more video from ecommerce sites. It can be tough to secure continued growth in such a climate – and this can lead to a degree of corner-cutting by some in order to be as efficient as possible and protect margins. An ideal fraud prevention solution efficiently completes these “good” transactions while rejecting “bad” ones, and enabling merchants to manually review those that, based on fraud scores, are “in-between.”. SK9 5AF While major holidays are known, what about unforeseen events that can place a huge strain on your infrastructure? By law, you can ask us what information we hold about you, and you can ask us to correct it if it is inaccurate. Common examples of security threats include hacking, misuse of personal data, monetary theft, phishing attacks, unprotected provision of services, and credit card frauds. Protecting online applications requires increased attention to the supply chains that make up a modern web application. This is also called chargeback fraud. If we are processing your personal data for reasons of consent or legitimate interest, you can request that your data be erased. Fake online reviews. which occurs when the criminal purchases items online using a false name and someone else’s credit card. Fraudsters are constantly devising new schemes to scam retailers, online merchants and customers alike. By accepting you agree to the use of the cookies as they are currently set. However, while native mobile apps are a big portion of online sales, less than half (45 percent) of online retailers have a native app. The chart below shows the total retail-specific bots on the seven key holidays we tracked. Usually, one of two things will happen if you spend money on a fake online store: You’Re going so that th… Part 1 in our blog series threats for online retailers to,... It asks for credit card information, bank information or other personal details sites, looking for and! 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