Retail Fraud Surges: New Tactics Threaten Consumers and Businesses
Retail and ecommerce fraud is on the rise, with criminals employing sophisticated tactics to exploit consumers and businesses alike. From phishing scams to gift card fraud, these illicit activities are costing businesses and individuals dearly. Dr. Michael Tobias has launched the Fraud Prevention Professionals Working Group to combat these issues.
One prevalent method is gift card fraud, where criminals drain balances before customers can use them. This often goes unnoticed until the card is redeemed. Fraudsters are also using sophisticated account takeovers, gaining access to customer accounts and collecting goods in person using fake IDs.
Manually keyed card fraud is another concern. Scammers request to manually enter stolen card information, leading to chargebacks. Returns abuse, involving the gaming of the returns process with counterfeit or swapped items, is also on the rise. Ghost tap and tap-to-pay scams see stolen credit card data used to buy gift cards in bulk for resale or return for cash.
Organized groups are convincing customers to make large purchases that are later returned for cash, a tactic known as victim-assisted scams. Quick change scams use distraction and sleight of hand during cash transactions to pay less than the actual amount.
To tackle these evolving threats, PROTECT 2025 will host four sessions focused on retail fraud, culminating in a Digital and Ecommerce Fraud Collaborative Conversation. As fraud techniques become more sophisticated, collective efforts are crucial to protect consumers and businesses.
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