Did you know 44% of businesses don’t report fraud, and very rarely recover the costs attached to it? If this is new to you, you probably missed us at this year’s Retail Council of Canada (RCC) Loss Prevention Conference on September 19th 2017.
The RCC Loss Prevention conference is Canada’s leading retail loss prevention conference, focusing on discussing loss prevention trends, and sharing best practices and improvement strategies to ensure retailers are maximizing safety and responsibility.
Our E-commerce Product Manager Patrick Brophy was a designated speaker at the conference this year, and discussed the rise in online fraud, putting the problem into context and sharing some best practices. Here’s a look at our favourite highlights from Patrick’s presentation, “The Fraud Shift: Why E-commerce Has Become a Fraudster Playground.”
On E-commerce Spending in Canada:
“E-commerce in Canada is going to grow over the next five years at a rate five times faster than traditional retail brick and mortar stores. By 2019, Canadians are expected to increase e-commerce spending by 54%.”
On World-Wide Online Customers:
“Retailers are bringing their businesses online to remain competitive. Statista [an online database of stats, surveys and market research] claims that an estimated 1.61 billion people worldwide purchase goods online in 2016, with global e-retail sales amounting to US $1.9 trillion. That number is projected to see growth of up to US $4.06 trillion by 2020.”
On the Cost of Unreported Fraud:
“44% of businesses don’t report fraud and very rarely recover their financial costs. That average cost in 2016 was $6,200. For larger merchants, that doesn’t seem like a lot. If you’re a small business, that’s crippling. If you look at Moneris’ own data, of the chargebacks we have to deal with on behalf of our merchants, 80% of those merchants don’t bother fighting. They just accept the loss. We aren’t talking thousands of dollars here, we’re talking millions.”
On The Signs of an Account Takeover:
“By gaining access to business server, fraudsters reveal thousands of pieces of ‘secure’ information, which may result in an account takeover. What are the signs to look for of an account takeover? Change in shipping address – best practice is to send an email to confirm the change. Modifying email and password – a password should be changed routinely, but look for deviations from a routine pattern. Adding an extra user on the account – extra users may be a sign that someone is using the account that isn’t authorized to do so.”
Want to learn more about Moneris? Check us out at CIX Fintech on October 17th 2017 at the Hilton Toronto. Our VP - Cloud Mobile & Emerging Solutions, Shem Ali and VP – Product & Client Solutions Patrick Diab, will be discussing the evolving payment technology landscape. Hope to see you then!