In 2020, identity fraud accounted for over $56 billion for businesses and consumers. As a result, fraud prevention has become a big priority for businesses because cybercriminals continue to find ways to circumvent security systems.
Consumers are victims of identity theft. Businesses are also identity fraud targets by fraudsters who use their identities to apply for credit cards, take out loans, withdraw funds from bank accounts and steal users’ personal information and proprietary business data.
According to a study released by Juniper Research, eCommerce merchants will lose around $20 billion in 2021 due to criminal activity, an 18% increase over the $17.5 billion lost in 2020, mainly due to credit card and friendly fraud.
Chargebacks were developed during the 1970s to protect consumers from dishonest merchants and credit card charges using stolen cards. Since the system favors customers over merchants, fraudsters have found ways to use it to their advantage. While many chargebacks are legitimate, around 35% of businesses say they have difficulty detecting and contesting illegitimate claims.
During the first half of 2021, online fraud attempts were 25% higher than those in the same period in 2020. This increase in fraud means there is no better time to consider a comprehensive identity fraud prevention system.
Request a consultation with the experts at Command Credit to get help with fraud prevention and chargeback management.