A Federal Reserve Bank of Atlanta blog talks about exacerbated ecommerce fraud during the current crisis:
There is no question that with the current COVID-19 environment, our daily habits have undergone tremendous change. As part of that change, I expect that ecommerce sales will increase at a greater rate in 2020 than in 2019.
Following social isolation guidelines, consumers and businesses are turning more and more to conducting their commerce transactions online. Prepaid carry-out, drive-through, and delivery orders now dominate the dining industry as inside dining options have been largely shuttered.
Large retailers have been promoting online ordering and ship-to-home delivery options as their stores are closed.
TransUnion reports that in the week from March 11 to 17, when the World Health Organization classified COVID-19 as a global pandemic, ecommerce transaction volume increased 23 percent over the previous week.
With increased volumes come risk:
This spike in ecommerce traffic will likely bring with it a parallel spike in criminal activity, possibly adding to the increasing fraud levels in ecommerce.
This shouldn’t come as any surprise.
It will be important for the good guys not only to be expecting this but also to be prepared for it by making swift adjustments that match the challenge.
Credit card issuers are on alert:
We know fraud management teams will be busy managing their fraud-detection tools and processes and expect they will rise to the challenge. We also expect consumers are ready and willing to assist in ways that are helpful as well.
The constant chess match with the criminal element will continue, and we look forward to seeing a chess piece on the good guys ‘ side of the board with some new moves to help aid in the fight against the bad guys.
Ecommerce is certainly a solution for those staying-at-home these days. I assure you, Amazon and Shipt know their way to our family home. But keep your guard up. Activate text alerts, and keep a digital fence around your shelter.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group