Recent data shows that the rise in eCommerce has led to a huge increase in card-not-present or CNP fraud. To get more research and survey results concerning this fact and know why you should work with a payment expert like PinWheel, read below.
eCommerce Growth Resulted in Fraud Increase
eCommerce and online retail transactions and revenue showed unprecedented YoY records in 2020. Quite naturally, bad guys couldn’t miss such an opportunity to target more consumers and businesses processing payments online. That’s the reason why there is a vivid increase in online payment-processing fraud related to eCommerce sales.
In 2020, consumers spent $4.28 trillion dollars across the world while making purchases over the internet. This was an increase of over 27%.
Based on ACI Worldwide Research, the YoY revenue growth of global eCommerce retail sales has made up 209%. According to Kount’s most recent eCommerce Trends, Spring 2020 Report, a 110% YoY rise in pure e-commerce orders in the U.S. alone has been registered, due to the COVID-19 Commerce Insight dashboard.
According to a payment-fraud company’s recent research, the overall global CNP fraud losses account for $17.2 billion by 2023. Meanwhile, global eCommerce spending is forecast to reach $5.9T during the mentioned time frame.
Fraud Rise in the U.S. and U.K.
A recent survey among 4.000 consumers and 400 retailers in the U.S., U.K., France, and Germany shows that 71% of the surveyed merchants didn’t succeed in properly preventing fraud. 66% of consumers stated they would choose another store after facing fraud.
COVID-19 has brought about a significant increase in the risk of fraud. 82% of merchants witnessed a rise in fraud in 2020. With the fraud-related situation being more alarming than ever, it’s critical to work with a true payment specialist to provide strong protection for your business.
That’s where an expert like Pinwheel Pay can step in to help you. PinWheel Pay provides merchants with integration with almost all major payment providers. In addition, you can accept most of the famous payment types. So, with Pinwheel, you can enjoy:
- The highest level of fraud prevention
- Exceptional data security
- The cheapest possible rates
- A global network
- The most advanced technology
- Solutions experts
Growth in eCommerce: Increase in CNP Fraud
COVID-19 forced many offline consumers to switch to the online space, thus accelerating the growth of online payment processing. The rise in online retail sales resulted in a big rise in cyberattacks and fraud. Work with a reputable payments specialist to protect your online transactions.
Author Bio: Content crafter Alex Wilmont has been active in the payments industry for over 15 years. He lives simply, gives generously and loves his 2 dogs. His mission is to enhance and innovate the fintech industry for years to come.