The growing use of mobile wallets, Buy Now, Pay Later (BNPL) apps, and social-media payments offer ease of payment processing. However, they’re also increasing the level of payment fraud worldwide.
According to UK Finance, the “epidemic of fraud” in the UK and unauthorised fraud losses associated with payments, remote banking, and cheques, accounted for £730 million in 2021. Who can help you reduce eCommerce fraud risk?
Fraud Increase in the UK
Card-not-present (CNP) fraud is the most widespread type of fraud in the country. In this case, fraudsters buy products or services over the Internet by using stolen card details. In 2021, fraud associated with remote purchases made up £412.5 million, thus causing immeasurable stress for merchants and customers.
What about Americans? Based on data from Atlas VPN, the Federal Trade Commission (FTC) registered reports about a $3.56-billion loss to online fraud in the first six months of 2022. This is about a 50% rise from the same period in 2021.
A Rise in Payment Fraud: How to Prevent It
Consumers and businesses in the UK witnessed losses of over £1.3 billion ($1.56 billion) in fraud attacks in 2021, as the Annual Fraud Report from UK Finance reported.
Based on a study by YouGov and TrueLayer, merchants (with an average transaction value of more than £500) lost an average of £235k. Specifically, merchants lose £1.70 for each £1 taken by a fraudster.
What can you do to fight fraud? It’s critical to apply a multi-layered solution approach typical of each customer journey phase. This is how you can assess the risks and behaviors in different digital channels, as Maanas Godugunur, director of fraud and identity at LexisNexis Risk Solutions says.
UK eCommerce businesses’ fraud-prevention efforts have registered some positive results. Namely, CNP-fraud losses reached a record high in 2018, accounting for £506.4 million ($607.3 million). Then, they witnessed a yearly drop, reaching £412.5 million ($494.7 million) in 2021.
To successfully fight fraud, you need to use the most advanced and secure fraud-prevention techniques. For this, consider working with a reputable payment-comparison expert in the UK that can help you find the best payment-security solutions in the industry.
Make sure the comparison company pays exceptional attention to terms, complaints, and integration of merchant-services providers. Moreover, with a true payment expert, you can get help with any merchant service, including a Worldpay phone number.
Merchants Are Losing Because of Fraud
UK retailers and eCommerce merchants are losing because of fraud. Thankfully, there are reliable measures you can take to reduce fraud. Consider working with a trustworthy payment expert in the country.
Author Bio: Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of payments and can best help you with a Worldpay phone number. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.