Here’s a look at just some of the issues on the horizon that online retailers … 8 Biggest Threats of Online Shopping Fake Online Stores. Clearly, improving the mobile CX mustbe moved up the digital priority list; if retailers don’t do this they risk being at a competitive disadvantage. Your colleagues will think you can see around corners – and they’ll be right. However, before you enter the world of e-commerce, be familiar with the advantages and disadvantages of selling online. Shoplifters and other criminals remain a major headache for traditional retail … Protecting online applications requires increased attention to the supply chains that make up a modern web application. which commonly happens in online marketplace sites that contain buyers and sellers in the platform. With 60% of the population without internet and out of reach of the e-retailers, there is a long time before e-retail can be a realistic threat to the traditional retailers. Looking at the assorted web application attacks, the number of attacks on Christmas Day were comparable to Cyber Monday, with the exception of cross-site scripting, which was five times more than Cyber Monday and two times more than Black Friday. 330 7th Avenue These threats include a decrease in consumer demand, a recession in the local economy, price wars among primary competitors, a change in consumer shopping habits, and even an increase in the competition. which is used by fraudsters in the event they are missing a piece of information from the card. The pressures on modern online retail businesses are consistent and insistent – Brexit and the devaluation of the pound, inflation, automation, ever-increasing competition – the list goes on. Five-star ratings can do wonders for online retailers, so it pays to be sceptical … An ideal fraud prevention solution efficiently completes these “good” transactions while rejecting “bad” ones, and enabling merchants to manually review those that, based on fraud scores, are “in-between.”, https://www.merchantfraudjournal.com/ecommerce-fraud-trends-2019/. Malicious automated attacks are a top threat to online retailers, a trend that has remained consistent before and during COVID-19. , which involves a consumer reporting they never received their item(s) and requesting a refund even though they did in fact receive the goods or services. There are over 666 millionregistered users on Tmall (Alibaba’s online shopping site) alone; the magnitude of this holiday attracted the higher amount of malware attacks. Fake online reviews. The world is changing at a rapid pace, with everything from global warming to shopping trends affected.So what does this mean for the apparel industry?What challenges are we facing in the next couple of decades? Theft of physical items. It asks for credit card information, bank information or other personal details. Inside Retail: With Forrester recently revealing that brands have struggled to meet customer … To submit a request regarding your personal data by email, post or telephone, please use the contact information provided below in the "Accessing and Correcting Your Information" section of this policy. Regarding the higher Diwali number, as with the session traffic, this represents a period of time over multiple days, versus a single shopping day. Get access to essential strategic content, in-depth reports, industry intelligence, and exclusive data. They’re always out on the internet probing sites, looking for vulnerabilities and ways to steal data or take over sites. Our newsletter provides insights, news, tips and more for Fraud, Risk, Payment and Security Professionals. Retailers who ignore e-commerce may see their trade lessening as customers continue to shift to ordering products online. Retailers face a lot of threats in the fast-changing industry. However, while native mobile apps are a big portion of online sales, less than half (45 percent) of online retailers have a native app. Ecommerce sales are projected to reach $632 billion in 2020. Vulnerable Wi-Fi networks. Singles’ Day 2 is a much smaller event than Singles’ Day 1, but the fact that it is firmly in the prime Christmas and Boxing Day shopping timeframe (Dec. 12) is the most likely explanation for its high number. We evaluated online retail traffic from around the world that touched nearly 100 retail websites and mobile retail apps, providing Akamai with more than 5 billion daily data points that we assessed in aggregate. Understanding the security threats facing online retailers in 2019, Top 1000 online retailers in North America, Hackers target e‑commerce sites to swipe payment data, Why all data breaches pose a threat to retailers’ customer experience, Amazon reports customer data breach ahead of holiday shopping weekend, The cost of a US data breach: $7.91 million. Wi-Fi has become a key retail tool in recent years. And even though we saw spikes of increased attacks during the known holidays, in reality they are out there every day probing your site for weaknesses and openings. All this focus on mobile CX can’t come at the expense of still providing an optimal desktop CX. They are however, keenly aware of holidays and what that means for increased online activity so they have extra focus on these days. It refers to sales tax associated with an online sale. E-Commerce Website SEO and Marketing Of note, this record was set on a weekday, and it was NOT during a global event such as Black Friday, the World Cup or Olympics. Stephen Covey addresses the concept of Backwards Planning in his famous book,The Seven Habits of Highly Effective People, as “Habit #2 – Beginning with the End in Mind.” Covey states in his book, “To begin with the end in mind means to start with a clear understanding of your destination. What’s more, DDoS [distributed denial of service] attacks targeting retail sites are increasing, along with complexity of the attacks. On that day, the volume of data being delivered across the Akamai network exceeded 72 terabits per second, surpassing the 70 Tbps threshold for the first time in the company’s 20-year history. Undoubtedly one of the biggest high street threats for many independent retailers is the rise of online shopping, or ecommerce, which continues to grow in popularity. By 2023, Forrester expects smartphones to influence $1.4 trillion in sales.”. Typically, 95% to 98.5% of transaction attempts are from real customers. Common Ecommerce Security Threats & Issues. which occurs when the criminal purchases items online using a false name and someone else’s credit card. Here’s a look at the emerging cybersecurity threats that affect online retailers today… Supply chain attacks – No direct access to retailers’ systems needed! That’s because roughly 88 percent of U.S. online adults use a smartphone, 45 percent use a smartphone at least once a month to research products before making a purchase and 28 percent use a smartphone at least once a month to purchase physical products. Singles’ Day 1, while essentially only in China is the biggest single holiday sale day in the world (US$31B compared to $US14B for Black Friday and Cyber Monday combined). An ideal fraud prevention solution efficiently completes these “good” transactions while rejecting “bad” ones, and enabling merchants to manually review those that, based on fraud scores, are “in-between.”. Note the data presented about the conversion differences between Android users and iOS users; having this detailed information and adjusting your web application for it could help to boost Android conversion rates. Make sure your ability to scale is guaranteed, beyond what Marketing and Sales project for peak traffic. If this trend continues unabated, many shopping centers will be left facing formidable challenges. Also, perhaps someone found a vulnerable version of a particular ecommerce software and was testing that against a lot of domains in an automated fashion. Although online retail via smartphones accounts for only one-third of online retail sales, smartphones’ impact on retail sales is massive. Ecommerce merchants face hundreds of different types of fraud threats. A BigCommerce research study found that 78 percent of online shoppers want more images and 30 percent want more video from ecommerce sites. 7. The decline of brands – Much of Walmart’s success has been based upon its ability to deliver name … ” Magecart and other threat actors are … Online retailing is growing at an astonishing rate, with online sales now accounting for around one quarter of the total retail market. Your Rights as a Data Subject: If we are processing your personal data for reasons of consent or legitimate interest, you can request that your data be erased. Our site uses cookies so that we can remember you and understand how you use our site. Information Commissioner’s Office Having this visibility will allow you to pinpoint the trends and glean actionable insights required to deliver your customers a smooth shopping and purchasing experience. According to Nexus, the “state cannot obtain tax jurisdiction over a retail until there’s a physical connection between the two”. Fake Online Stores. Last year, one UK retail sector survey found that 85 per cent of British consumers aged 18 and over already shop online, with the proportion expected to rise in the years ahead. Transactions like this fall to the responsibility of the online marketplace business. Tied at 38 percent were increasing customer loyalty, improving personalization and improving user experience (e.g., navigation, speed and responsiveness). Unfortunately, with higher sales volumes comes increased volumes of fraud. The biggest threat to retail sales growth. However, you can also contact the Information Commissioner’s Office via their website at www.ico.org.uk/concerns or write to them at: There is no single reason, but the rise and rise of online shopping is thought to be a major factor in the decline of the “high street.”. While web performance is critically important, security is also a vital area of focus and investment because threat actors don’t take holidays. If you make one improvement to your risk management program this year, partner with Fraud.net and the 1000s of other companies in the network. For this, making a physical location your office might be a good idea. Akamai provides content delivery network services to 354 of the Top 1000 online retailers in North America. Join this elite group to protect against fraud that you haven’t even seen yet. In a world in which fraudsters have hundreds of tactics for committing ecommerce fraud, Fraud.net enables merchants to approve more transactions while reducing fraud with advanced, AI-powered fraud detection, case management, data mining and visualization. The seller receives money from the buyer but has no real product to sell. Water Lane Wilmslow Don’t’ fight fraud alone. Whilst Mike Ashley’s call for an e-commerce tax has made the headlines, the incremental and innovatory changes embraced by the operators discussed above provide a platform for effective competition, if not an ability to reverse the effects of the e-retail boom. By accepting you agree to the use of the cookies as they are currently set. They normally try to imitate legitimate online retailers, claim they work with them, or invent their own made-up retail brands. Once received, this data allows the criminal to proceed with identity theft. (Fraud.net offers. They use the error message(s) returned by the website to pinpoint the correct credit card details they need to accomplish one of the other types of fraud. New threats to online retailers 09/06/2016 09/07/2016 by Report from Counsel As more and more companies sell things online, especially to far-flung customers, it can be difficult to keep track of the ever-changing legal rules that apply. Subject to our ability to verify your request, Fraud.net will correct the Information within thirty (30) days of receipt of your request. Copyright © 2020 Digital Commerce 360 | Vertical Web Media LLC. SUMMARY The shopping center industry estimates that online retail sales will more than double over the next 10 years and thus pose a substantial threat to the industry. Ecommerce merchants face hundreds of different types of fraud threats. First, retailers need to realign their value proposition to incorporate digital. legal@fraud.net For example, unusually large order sizes, differences between shipping and billing addresses, a high frequency of small transactions… all are potential fraud indicators. When the owner of the card notifies their credit card company about the stolen card, the business that sold the goods is responsible for reimbursing the credit card company. E-commerce threats and opportunities. With retailers facing a raft of threats and opportunities brought about by digital technologies and increased competition, we sat down with Chris Stolke, manager and head digital strategist at software firm Pronto Woven to get the latest in digital retailing. Top 7 Ecommerce Fraud Threats Facing Online Retailers in 2020. which happens when criminals use stolen credit cards to make online purchases. which happens when the criminal sends an email to an individual, but it appears to be coming from their bank or other financial institution. Fraudsters are constantly devising new schemes to scam retailers, online merchants and customers alike. Finally, in some circumstances, you can ask us not to reach decisions affecting you using automated processing or profiling. While major holidays are known, what about unforeseen events that can place a huge strain on your infrastructure? Your Right to Complain: The chart below shows the total retail-specific bots on the seven key holidays we tracked. But in truth they too are always present as this major online retailer recently discoveredthey were infiltrated from late September to November. Large retailers are becoming prime targets for ransomware, for if the hackers capture and encrypt enough sensitive data, companies are forced to pay significant ransom fees to get the data back. Usually, one of two things will happen if you spend money on a fake online store: The record-setting volume of traffic, which is comparable to delivering more than 10 million DVDs per hour, was driven primarily by live sports events, gaming releases and major software updates, along with elevated traffic levels from many of the world’s largest ecommerce sites. (Fraud.net offers. If we are processing your personal data for reasons of consent or to fulfill a contract, you can ask us to give you a copy of the information in a machine-readable format so that you can transfer it to another provider. One of the other major barriers to e-retail is the ecosystem barrier. Cybercriminals set up fake shopping platforms to trick users into wasting money or revealing sensitive data. This is the most common type of fraud. Increasingly, both the B2C and B2B customer journey starts online. Credential abuse/stuffing attacks (in which criminals use stolen personal data of consumers to try to commit fraud) closely echo retail-specific bots, with the exception being Singles’ Day 2. Copyrights © 2020 All Rights Reserved by Fraud.net Inc.Terms of Use | Privacy Policy | Security & Compliance. However, meeting this content demand can create slowdowns, such as improperly formatted images for mobile screens versus desktop, for example. Fraud.net Inc. The top answer was creating a consistent brand experience across channels, at 57 percent. The lower number for Cyber Monday is intriguing; a possible explanation is that threat actors are becoming smarter and more focused in their attacks, only using the more profitable types. But in truth they too are always present as this major online retailer recently discoveredthey were infiltrated from late September to November. To reinforce how important is to plan for peak traffic events at all times, not just holidays, on Tuesday, December 11, 2018, the Akamai Intelligent Edge Platform for securing and delivering digital experiences set a new record for peak traffic on its global content delivery network (CDN). New York, NY 10001 Amazon remains a looming threat for some of the biggest retailers in the country — like Walmart, Target and Macy's — that are trying to grow their businesses online… You have the right to ask us to stop using your information for a period of time if you believe we are not doing so lawfully. Learn more about our fraud prevention platform, and how we can help protect your business. Visual content is a critical factor when it comes to providing a great mobile CX, and retailers need to examine what they currently provide. Growth may grind to a halt and some centers may also see a drop in sales. The most common types of fraud attacks include: Credit card fraud, which happens when criminals use stolen credit cards to make online purchases. Chris Wraight, director of industry marketing, Akamai. A new report from Verizon shows that ransomware attacks on retailers have doubled since 2017 and now target business critical systems. This entails testing from highly distributed locations to simulate global spikes as well as pushing applications to the limit, all well in advance. E-commerce offers many ways retailers can reach consumers and conduct business without the need for a brick-and-mortar storefront. It’s one thing to plan for peak traffic that could occur at any time, versus being prepared for security attacks that do occur at all times. (In a cross-site scripting attack the criminal injects malicious code into a vulnerable web application. Operationally, online retailers need to plan far in advance. Credential stuffing attacks were high over the seven holidays we are reporting on. According to the report, 68% of breaches took months or longer to discover, even though 87% of the breaches examined had data compromised within minutes or less of the attack taking place. Wycliffe House Today, it's almost economic suicide for any retailer not to be able to sell online. 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