Fraudsters Are Ready For Cyber Monday, Are You?
2.29 billion. According to Internet Retailer, last year’s Cyber Monday demolished all previous sales records. While this year may not match the 20% year-over-year increase reported by IBM in the article, online businesses need to prepare for a surge in sales come December 1st. And, if you aren’t prepared, a fraud hangover months after the silly season is over.
Put simply, fraud follows opportunity. With 2.29 billion in transactions, Cyber Monday offers more opportunity for online fraud than any day of the year. And the impacts on retailers last well beyond the holidays, often creating a huge revenue hole to start the year. Here’s how it happens:
- Your business gets hit by fraud, It’s a triple whammy, costing you the resources spent to fulfill the order, the product or service itself and the associated revenue that the bank takes back.
- You open your statement a month or two or three later, receiving notice of the bad transaction. You are now on the hook for a chargeback.
- If the percentage of fraudulent transactions exceeds 1% of overall transactions your business is the latest addition to the chargeback club. “Benefits” include increasing fines, significant hurdles to get out of the program and the very real threat of losing online payment options completely (just like more than 10,000 online merchants who lost the ability to accept credit card payments last year alone). Seriously.
Unfortunately the fun doesn’t stop there. With the threat of fines and losing payment options, you will find yourself investing more time and resources in reviewing even remotely suspicious transactions, compounding the money you’ve spent to date on fraud. Ultimately your focus shifts from growing your business to fearing the risk involved with any transaction, even perfectly legitimate ones.
We want you to enjoy Cyber Monday months and months after the sales put you well into the black for the year. To help get you ready, we are hosting our “Fraudsters Are Preparing For Cyber Monday, Are You?” webinar on October 9. Take an hour out of your day to learn how your business can avoid the holiday hangover with specific tips and actions you can take, the growing opportunities of mobile commerce and key things to look for when you evaluate fraud solutions.
Consider it an early gift that can help you expand business into new markets long before the holidays start.