Increasingly, non-payment account abuse is an issue for e-commerce merchants and other companies. While payment fraud in the early days of e-commerce spawned an entire industry dedicated to its prevention, other types of abuse are on the rise, according to a new report from Forrester commissioned by antifraud technology provider Sift Science. Fraudulent registrations were named by 65 percent of respondents as the abuse to which they are most vulnerable, followed by fake accounts (61 percent) and promotion abuse (53 percent). While payment fraud was still named as a top concern by 51 percent of respondents, it’s clear other types of fraud are affecting customers and, consequently, the reputations and brands of e-commerce retailers.
According to the Forrester report, it is even more important than ever to shift from a narrow focus on payments and credit cards to “a more holistic focus on trust and safety.” That will require executive buy-in and the inclusion of other internal corporate stakeholders outside of the departments responsible for risk management and fraud prevention. It also requires that a company’s vision of fraud prevention expand beyond tools and technology to first ensure it has “governance and processes that cover all transactions and channels before settling on the right tools for the job.”
- Minimizing Non-Payment Account Abuse