Account login fraud, which some call "takeover" fraud, tripled last year, according to Javelin Strategy & Research, costing $5.1 billion in the US.
An interesting side-effect of cross-border ecommerce's growing popularity—more than half (54%) of transactions on the ThreatMatrix network are cross-border—is that it has raised retailers' guard in accepting sales from countries and buyers perceived as high-risk. Because of stricter rules, cross-border transactions are 69% more likely to be rejected than domestic ones.
These fears aren't unfounded, though. Digital cross-border traffic has a 22% higher likelihood of identity spoofing and 15% higher risk of device spoofing.
Reducing friction at checkout—one way digital retailers are trying to improve the customer experience—is often at odds with cybercrime protection. This is especially true with mobile commerce.
In a November 2017 survey by Internet Retailer and ACI Worldwide, 20% of retailers said that fraud prevention was most important, 26% said fraud prevention was more important but they had an eye on the frictionless experience while 22% were trying to find a compromise. Only 6% considered ease of transactions a priority over protecting from cyber threats.