Friday, December 4th, 2020
Business will thrive despite the second wave of COVID, but fraudsters will undoubtedly take a shot at digital newbies, most of who’re shopping online for the first time.
According to Naples, a Florida Payment firm, global e-commerce transactions for 2020’s Q4 will jump 27 percent.
Since sheltering-in-place became the norm, consumers have ditched the physical point of sale for online shopping platforms. ACI’s 2020 global report predicts this trend will persist as more merchants take business online to meet customer needs.
ACI believes more customers will use BOPUS delivery options this festive season (Buy Online, Pick Up in Store) — up to 40 percent.
According to ACI executive VP Debbie Guerra, customers will use BOPUS more and more this holiday.
“Most consumers began their holiday shopping as early as October because people are worried about inventory shortages and delivery delays.
Last year, the ACI’s e-commerce transaction volume jumped 21%. In September, the gaming and retail sectors grew by 71% and 45%, respectively. Some of the most affected areas include the travel and ticketing sectors, which reduced 21 percent and 75 percent respectively.
Consumers & Businesses Should Watch Out for Fraudsters
As eCommerce flourishes, online scammers and fraudsters are intensifying their malicious activities.
According to ACI, the average ticket fee tied to fraudulent events between Jan & Sept 2020 went up by $9 from the previous year due to increased electronic sales.
As much as most consumers prefer the BOPUS delivery option, fraudsters will likely use this channel to exploit unsuspecting shoppers.
Debbie expects this delivery option to thrive for fraudulent and genuine purchases since more businesses and merchants will adopt it amid a pandemic. She urges traders and service providers to be wary of online fraud, more so during the holiday season.
“The pandemic has accelerated digital shopping and payment modes speeding the shift towards cross-channel consumer journeys,” she explains. Consumers can now pay through their smartphones in brick-and-mortar stores.
While such digital capabilities enhance consumer experience and extend market reach, some can expose merchants to fraud.
eCommerce is an excellent way to conduct business, particularly amid a pandemic.
However, it’s advisable to watch out for online scammers and fraudulent activities to avoid inconveniences and losses.
Implementing the best protection mechanisms can fortify your security defenses and reduce losses incurred from fraud.