Ecommerce Fraud Prevention

Online retail transactions continue to set new year-over-year records. From ordering online and same-day pick-up to on-demand streaming, the pandemic has accelerated ecommerce to triple digit percentage growth, which is years in advance of previous predictions for both tangible and digital goods and services.

At the same time, this new reality and accelerated growth has also created one of the fastest-growing opportunities for bad actors and cybercriminals to perpetuate fraud, like account takeover, new account fraud, and synthetic identity fraud. This has led to retailers and consumers worldwide experiencing annual losses in the tens of billions of dollars each year.

As criminal tactics grow increasingly sophisticated, it’s more important than ever to incorporate anti-fraud tools into your transaction processes. Every dollar lost by a retailer to fraud is truly equal to $3.60 after total losses are calculated, which is something very few retailers can afford.

By layering in fraud prevention methodologies powered by breach data recaptured from the criminal underground, organizations can operate more efficiently and with greater accuracy.

Get a Demo

378%

ATO rates for physical ecommerce businesses (those that sell physical goods online) jumped 378 percent since the start of the pandemic.1

28%

Based on a survey of 1,000 U.S. adult consumers, 28 percent of respondents would completely stop using a site or service if their accounts on that site were hacked.2

61%

Of consumers who confirmed being victims of ATO attacks, 61% said their e-commerce (both physical and digital goods and services) accounts were hacked.3

The SpyCloud Difference

SpyCloud proactively helps retailers identify and prevent account takeover, fraud connected to malware, account opening fraud, and card not present fraud, all while reducing friction and false positives. Its flexibility of implementation provides the greatest impact for improving the security for your most precious assets – your customer relationship and your profitability.

We understand that:

  • A lack of effective cybersecurity measures can put your merchant account in jeopardy of being shut down or charged at a higher interest rate.
  • Unaddressed security flags from credit card processors can lead to a retailer losing ground in profitability.
  • Any additional cybersecurity responsibility forced on the customer can lead to diminished brand loyalty and loss of sales.
ECOMMERCE
How a Top 10 Travel Booking Site Thwarts Online Fraud with SpyCloud Read the Case Study

Account Takeover Prevention & Beyond

The surge in online fraud means that merchants can’t leave the burden of account security to their customers alone. SpyCloud believes in shedding light on otherwise undetectable vulnerabilities like high password reuse rates, malware infections, or recent breach exposures that fuel account takeover, so enterprises can act proactively to prevent fraud and secure their bottom line.

SpyCloud helps ecommerce retailers:

  • Prevent ATO

    SpyCloud identifies when your consumers appear in a recent breach, also disclosing the breach type, severity, and current level of risk associated with their account. We also flag consumers whose devices are infected with malware, which means they are at extremely high risk of account takeover and online fraud.
  • Stop Synthetic Identity Fraud

    Criminals get creative by taking bits and pieces of consumer identities and constructing synthetic user profiles, opening the door to fraudulent activity. SpyCloud spots the abnormalities and user information disparities, making it easy to detect synthetic identities.
  • Reduce Consumer Friction

    Retail transactions need to be as seamless as possible. SpyCloud provides insights that allow organizations to let legitimate, low risk consumers transact friction free, while also flagging high risk or malware infected consumers for tailored interventions in alignment with business needs.
  • Investigate Online Fraud

    Retailers use SpyCloud to investigate online fraud, which is often perpetuated using synthetic identities, and attribute threats to specific actors or groups.

Prevent Fraud, Without Adding Friction

SpyCloud provides multiple offerings to help you prevent account takeover, fraud tied to malware, card not present fraud, and account opening fraud at scale.

Detect and Reset Compromised Passwords to Prevent ATO

Check your consumers’ logins against billions of credentials recovered from the criminal underground, so you can identify matches and intervene proactively to lock criminals out of customer accounts.

Explore Consumer ATO Prevention

Tailor the Customer Journey Based on Fraud Risks

Whether a customer creates an account or transacts via guest checkout, Identity Risk Engine can help you assess the risk that a criminal may be abusing their stolen information for online fraud.

Explore Identity Risk Engine

Additional Resources

Malware Infected User Guide
Infected User Response Guide

Handy guide to decipher what it means when your consumers’ information appears on a botnet log, and how to contact infected users with an action plan to re-secure their accounts.

Infographic: Retail Sector Breach Exposure

We examined SpyCloud’s database to see what breach data we could tie to companies in the Fortune 1000. Get details on the exposure of employees in the retail sector.

Reducing Identity Fraud in Ecommerce

How can merchants best balance the customer experience and fraud prevention? Our report offers a new approach for merchants to differentiate between low- and high-risk customers.

Protect your high-value consumer accounts from fraud.