Report: E-commerce fraud is set to explode
Fraudsters are giving retailers another issue to contend with — and many aren’t prepared.
In 2017, there was a 200% increase in credit card testing, a tactic used by fraudsters where they test stolen credit card numbers with small incremental purchases before making large-dollar purchases on the card. This was an increase compared to the same quarter in 2016, according to new data from Radial.
Fraud also is up 30% year over year, proving to already struggling retailers that this is just the beginning of online fraud in the post-EMV world.
For many retailers, managing fraud continues to be a double-edged sword. Many either apply tools that over-reject orders, which decreases their customer transaction approvals and lose valuable revenue in return. Or, retailers build their fraud teams in-house, a move that often lacks the historical data and rules needed to catch subtle card testing tactics.
"Our data adds another alarming statistic for retailers who may be unprepared to manage fraud activity in e-commerce,” said Stefan Weitz, chief product and strategy officer at Radial.
“We know fraudsters won't stop looking for opportunities to monetize their stolen data and will even automate this process once they have a card that appears to be working,” said Weitz. "This results in quick, large volume purchases that leave retailers vulnerable. When retailers miss card testing, they're contributing to future card attacks. Fighting card testing is complicated, but can stop millions of unanticipated fraud attacks if tracked and managed efficiently."
As the fraud landscape rapidly changes, it presents pervasive and growing threats for e-commerce merchants. Since August 2016, the market segments of electronics, entertainment, jewelry, and sporting goods experienced the highest increases in online fraud during the 2016 peak season, data revealed.
"Increasing revenue has never been more important for retailers. They cannot afford to be slammed with fees that stem from missing fraud activity and must count on each good order getting approved," said Weitz. "More retailers claim they are combatting fraud, but underestimate the other areas they're endangering – like revenue and customer loyalty – when they don't use the types of data sets Radial has to increase transaction approval and take on full liability of combatting fraud.”
Albertsons names longtime vet Jewel-Osco division president
Albertsons’ Jewel-Osco division has a new executive at the helm.
The company has named Doug Cygan division president, effective immediately, overseeing 186 stores in Ill., Ind. and Iowa. Cygan was most recently Jewel-Osco’s VP marketing and merchandising. He joined the company in April 1980 as a part-time clerk, staying with the chain as he completed his education and worked his way up through the ranks. He became VP marketing and merchandising in 2011.
“Doug knows Chicago customers and Jewel-Osco better than anyone in the business,” Albertsons president and COO Wayne Denningham said. “Jewel-Osco’s secret to success has always been knowing what Chicago customers want – from local products to specialty items to offering the best in fresh. Doug’s 37 years with Jewel-Osco uniquely positions him to lead this fantastic team, and we’re excited to have someone of his caliber directing our operations there.”
Denningham, Cygan and Withers have all been with Albertsons or one of its banners for more than 25 years each.
Report: Boxed to create robotics-run warehouse
While some industry observers fear that robots will replace retail workers, Boxed is embracing the technology.
The online retailer, which sells consumer packaged goods in bulk, announced on Thursday, April 27, that it will completely automate its fulfillment center in Union, New Jersey, with robotics — a move that will contribute to driving reliable profits, according to Business Insider.
Boxed’s facility will feature a three-story, 80-ft.-long command module that will handle all of the operations typically performed by human hands, according to the report.
Boxed’s CEO Chieh Huang told Business Insider, “robots are less expensive to ‘hire,’ they don't take sick days, and in a three-story fulfillment center, they don't have any safety risks the way people do.”
But Huang isn’t turning his back on his employees. Existing associates — many who hold temp positions — will be retrained to perform new tasks, including servicing conveyor belts, troubleshooting software, or customer service. These associates will also receive increase their pay by an average of 13%, the report said.
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