What will e-Commerce fraud prevention look like in 2018? Because the fraud landscape is evolving so quickly, the one sure prediction is that there will always be new challenges for merchants.
But the rewards are worth the effort: the worldwide e-Commerce market was valued at $2.3 trillion> for 2017, and 2018 should see even more growth. Here are three issues that will be front and center for online sellers in the year ahead.
The 2015 EMV transition in the U.S. led to a spike in Card Not Present (CNP) fraud. But two years after the EMV shift, fraud is still on the rise. The value of e-Commerce fraud in the U.S. alone is projected to rise from $10 billion in 2014 to roughly $19 billion in 2018. This explosive growth in CNP fraud puts it first among card fraud methods in the U.S., despite the fact that Javelin's Fixing CNP Fraud study found that the transition to EMV will have a negligible effect on the volume of fraudulent e-Commerce in the United States through 2018.
If the EMV fraud bump is over, why is fraud on such an upswing? More merchants are selling internationally, giving fraudsters more opportunities to exploit cross-border fraud-prevention gaps. CNP fraud will continue to rise as long as U.S. e-Commerce does, according to the Javelin study. And, as old-fashioned as it may sound, fraudsters are increasingly using the telephone to commit CNP fraud on mail order telephone order (MOTO) orders.
Pindrop Lab found that call-center fraudrose by 113% from 2015 to 2016. Why? Again, there are weaknesses that fraudsters can exploit, such as inadequate fraud-prevention training of customer service representatives and easy ways for thieves to mask or change their location data.
Challenge: Balancing Fraud Prevention With Customer Satisfaction
Today's online shoppers expect an easy, low-friction shopping experience, and a growing number of them are making purchases on their smartphones.