The holiday season means dollar signs for e-commerce retailers as well the fraudsters who target them. According to the National Retail Federation, sales in November and December can represent up to 30% of a retailer’s annual business. The NRF expects holiday retail sales in November and December to increase between 4.3 and 4.8 percent over 2017. Total spending is expected to range from $717.45 billion to $720.89 billion, with mobile commerce accounting for 44% of the the holiday eCommerce spending.
Unfortunately, with this increase in volume comes a spike in fraud. More than $3.5 billion is lost to online fraud each year, and the holidays are the prime time for attack. With such a high percentage of revenue taking place this time of year, it’s important for online retailers to take every step possible to protect what they’re earning from account takeovers, identity theft and chargeback.
In our latest infographic, we explore how eCommerce fraud teams prep for the holidays including if they hire seasonal help, when they start planning, how they update their rules, challenges they face, and more.
Manual review teams’ work skyrockets during the holiday season, with 49% of respondents’ queues volume increasing 25% or more. However, it’s their job to get orders pushed through as quickly as possible, while also being accurate. 78% have up to 5 minutes to review a transaction, with the most common being 2.5-5 minutes. But they can’t do it on their own, they need help. On average, 70% of companies use 3 or more tools to help make this process smoother.
Fighting fraud like a pro doesn’t come easy. You have to find a balance of keeping your actual customers’ experience a positive one, while keeping the fraudsters out. The things our customers are most concerned with are: long review queues, high chargeback rates, false positives.
To learn more about tips and tricks on how to be prepared for the holiday season, download the full Holiday Prep Infographic.