Sift reveals ecommerce fraud tracker

Monday 27 April 2020 10:49 CET | News

Sift has announced the release of its COVID-19 and E-Commerce Fraud Tracker, a weekly updating digest of changes in ecommerce and fraud amid the coronavirus pandemic. 

Since the spread of the coronavirus, changes in consumer shopping behaviour have impacted businesses in nearly every industry across the world. Sift has observed pertinent and sometimes counter-intuitive trends in activity and payment fraud rates across its network of over 34,000 sites and apps.

Some of the company’s initial findings include:

  • Online businesses have seen sharp increases in activity across their platforms, which leads to the fact that the rate of attempted payment fraud (the percentage of fraudulent payments out of total transactions) has increased roughly 50% since early January.
  • A steady increase has been seen in activity across digital ecommerce sites through the beginning of 2020. Event volume shot up 23% in this vertical starting in March, when many state and local governments implemented stay-at-home orders. Fraud rates have not caught up with the increased activity, however, Sift has seen a marked growth in total instances of fraud in that vertical.
  • Both Ticketing & Events and Travel & Transportation companies have seen plunging transactions on their websites and applications. Attempted fraud instances have largely remained stable, thus creating sky-high fraud rates. This means that companies whose fraud rates get too high are subject to fines from payment providers, adding additional costs on top of already catastrophic losses.
  • Physical ecommerce, such as when a customer orders groceries online and picks them up in-store, has seen a 29% increase in event volume. Fraud rates in this vertical have also exploded 68%, which could possibly be due to fraudsters’ ability to hide more effectively within higher volumes.

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Keywords: Sift, launch, COVID-19, coronavirus, ecommerce, fraud, trust, safety, cybercriminals, pandemic, shopping behaviour, payment fraud, losses, groceries online, physical ecommerce
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime