Subj : Your own customers might be your biggest source of fraud
To   : All
From : TechnologyDaily
Date : Thu Apr 13 2023 18:15:03

Your own customers might be your biggest source of fraud

Date:
Thu, 13 Apr 2023 17:00:41 +0000

Description:
The rising costs of living makes honest people turn to scams, fraud 
prevention experts claim.

FULL STORY
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For Chief Financial Officers (CFO) of online merchants, payments fraud is the 
number one risk to their business. 

This is according to fraud prevention platform Ravelin , which recently 
polled nearly two thousand e-commerce leaders from merchants across 10 
countries, including CFOs, CTOs, Chief Risk Officers, and fraud and payments 
managers, on their biggest challenges today. 

Online payment fraud is a major challenge for 54% of the respondents, 
followed by account takeover (50%), returns and refunds abuse (52%), and 
promotions abuse (52%). To tackle the problem, most finance leaders expect to 
grow their fraud teams this year; in fact, a third of the respondents believe 
their fraud teams could grow by a fifth in the coming months. Fraud as a 
service 

This year, CFOs cant just pay attention to classic criminals - people who are 
out there actively looking to commit acts of fraud, identity theft and the 
like. The rise of the criminal customer and professional organized fraudster 
has been dramatic this year too, according to the report. Read more 

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The criminal customer is often engaged in whats called friendly fraud, where 
they abuse returns, promotions, and various company policies. One of the 
schemes theyre increasingly abusing is buy-now-pay-later, it was found. 

Most respondents believe otherwise honest customers turned to scams due to 
the significant rise in the cost of living. This trend is especially 
accentuated among the younger customers, Ravelin says. 

Citing a separate study by fraud agency CIFAS, the company says one in seven 
digitally-savvy 16-34 year-olds admitted to being involved in some form of 
first-party fraud. 

More than half (57%) of CFOs claim to have seen sophisticated fraud as a 
service in action. According to the respondents, there are organized groups 
out there buying items using stolen credit cards, and then reselling them to 
customers who are oblivious to how the items were originally obtained. 

CFOs at online businesses, who have overall responsibility for fraud, tell us 
fraud from organized criminals remains a perpetual thorn in their side, 
commented Ravelin CEO Martin Sweeney. But fraud by their own customers runs 
close behind. They recognize the vast majority of internet shoppers are 
scrupulously honest, but recognize they need to be increasingly vigilant for 
those who are not. These are the best credit card fraud detection platforms 
right now



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Link to news story:
https://www.techradar.com/news/your-own-customers-might-be-your-biggest-fraud-
risk


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