The growth of buy online pickup in store has given consumers greater convenience and flexibility, especially during busy shopping periods. However, as retailers expand omnichannel fulfillment options, they are also creating new opportunities for fraudsters looking to exploit gaps between digital and physical commerce channels. The latest data from ACI Worldwide highlights how criminals increasingly target these blended shopping experiences, making fraud prevention a critical priority for merchants.
During the 2018 holiday shopping season, buy online pickup in store transactions surged as consumers sought last-minute gifts and faster fulfillment options. While the model delivered clear benefits for shoppers, it also attracted fraudsters who leveraged stolen payment credentials to place online orders and collect merchandise in person. As omnichannel commerce continues to grow, retailers must balance convenience with stronger fraud controls to protect both their businesses and customers.
New post-holiday merchant data released by ACI reveals that fraudsters took advantage of retailers that offered buy online, pick up in store (BOPIS) during the 2018 holiday shopping season. As the following Business Wire item presents, the holiday grinches used stolen credit card data to make online purchases that they then picked up in stores.
New benchmark data from ACI Worldwide, a leading global provider of real-time electronic payment and banking solutions, revealed a 13 percent increase in fraud attempts in the ‘buy online pickup in-store’ (BOPIS) channel during the 2018 peak holiday season.
Based on hundreds of millions of merchant transactions, including some of the world’s leading global retail brands, BOPIS also saw consumer transactions peak at 20 percent right before Christmas as shoppers bought last-minute gifts before the holiday.
“As chip-and-pin credit cards are harder for fraudsters to replicate, it is driving them toward card-not-present, cross-channel fraud,” said Erika Dietrich, global director, Payments Risk, ACI Worldwide. “For example, fraudsters can use stolen credit card information to make a card-not-present purchase online and then simply walk in and pick up the item in-store. We’ll see this trend continue to grow in the coming years, and merchants will need to pay more attention to their omni-channel fraud controls.”
Principal findings from the data include:
- Overall volume of purchases increased by 16 percent, while overall value increased 9 percent compared to the same period in 2017
- BOPIS transactions increased 20 percent, peaking the weekend prior to Christmas
- Fraud attempts on BOPIS increased 13 percent
Payment card fraudsters will always find the path of least resistance and have discovered vulnerabilities in online purchases that are fulfilled via in-store pickup by the assumed buyer. But in some BOPIS purchases, the fraudster is the one picking up the merchandise. To compound the problem for merchants, the criminals can then make a return at another store and often get a gift card which can then be easily sold off. Lesson learned: merchants need integrated payment fraud detection systems that spot fraudsters before they can pull off their crimes.
Conclusion
The continued rise of buy online pickup in store services underscores the importance of strengthening fraud defenses across every stage of the customer journey. As fraudsters adapt to new retail models, merchants must deploy integrated fraud management tools that connect online purchases, payment authentication, fulfillment, and returns processes.
While buy online pickup in store remains a valuable convenience for consumers, retailers that fail to address cross-channel fraud risks could face increasing losses and operational challenges. Effective fraud detection, real-time analytics, and omnichannel visibility will be essential for supporting growth while maintaining trust and security.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group
