July 26, 2019
Trends in Insurance | How Can We Prevent Fraud?
Across the board, insurers found they were experiencing a huge…
With the stresses of Black Friday and Cyber Monday shopping behind us, the holiday shopping season of 2018 has almost come to a close. However, despite all of the holiday cheer, something more sinister may be lurking on the horizon – a 14% increase in fraud attempts. This year, holiday shoppers were expected to spend a record $7.8 billion on the deals offered during Cyber Monday, simultaneously aligned with the peak of fraud attempts – as fraudsters are on the edge of their seat, waiting to take a hold of consumers’ financial details.
As cross channel fraud continues to grow, fraudsters are most likely to target shoppers via in-store traditional and online channels; however, the latest option to buy online and pick up in-store has proved to be inviting as well. Additionally, the increasing number of consumers purchasing high ticket items this holiday, i.e. smartphones and other tech devices, has also driven the average fraud ticket upward. These are not the only channels being impacted by fraudsters – recent studies have also identified fraudsters directing their aim the call center.
On another hand, the growing popularity of smart speakers has opened more doors for shopping capabilities, and by default, opened more doors for fraud. Out of voice device users, 29% are already utilizing them for shopping, with an additional 41% expected to join the trend.
Whether involving the call center, online or traditional channels, some retailers are stepping up their efforts to stop fraud, with three-fifths surveyed stating they are allocating resources to investigating and addressing fraud during the holidays especially.
For more information, check out our on-demand webinar: The Voice Trends and Fraud in Retail.