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89 percent increase in loyalty program fraud, Forter reveals

Tuesday 15 October 2019 10:47 CET | News

Forter has released the seventh edition of its Fraud Attack Index, tracking shifting behaviours in online businesses across a variety of industries.

The report indicates that fraud is evolving rapidly beyond the point of the transaction to accounts such as loyalty programs and abuse of return policies. Loyalty fraud increased by 89% year over year, while the total dollar amount in online fraud increased by 12% year over year.

Fraudsters are having significantly more success in account takeover (ATO) attacks, as 1.5 million individuals whose accounts had already been compromised had additional accounts opened in their name. Fraudsters transfer funds to these accounts from their victims’ legitimate accounts. This represents a factor of two increase from the previous high.

Taking advantage of silos that separate brick and mortar and online operations, Buy Online Return In-Store (BORIS) fraud increased by 23%, and Buy Online Pickup In-Store (BOPIS) fraud also increased by 23%. Coupon abuse likewise saw an increase of 10%.

Forter is an ecommerce fraud prevention provider, protecting over USD 140 billion in online commerce transactions for over 500 million consumers globally from credit card fraud, account takeover, identity theft, and more.


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Keywords: Forter, ecommerce, loyalty fraud, fraud prevention, merchants, retailers, ATO, study, BOPIS
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Countries: World