Kount LogoBLog Against Fraud

He Stole $2,100 Vossen Wheels Without Jacking Up the Car

posted on: Mon Jun 19 2017

Vehicle parts thieves are giving up their slim jims, hydraulic jacks and power lug wrenches for ultra-sophisticated, high-tech tools that allow them to steal high-end automotive parts and products…without breaking a sweat or scraping a knuckle.

Here’s some dramatic footage of this nefarious technology in action…

Fraudster

Auto & Parts are one of the top 3 categories for online sales, with $46.2 billion in eCommerce sales projected for 2017 and $51.6 billion forecast for 2018. And as the saying goes: “Where there are online sales, there is online fraud.”

Today, fraudsters are swiping millions in new and pre-owned loot without ever stepping outside the comfort of their lairs. They’re also exploiting the vulnerabilities of mobile commerce to bilk aftermarket auto and powersports retailers and rip off custom wheelsets, performance parts, and audio components.

What’s behind the surge in online fraud?

Much of it can be traced back to the EMV mandate that rolled out at the end of 2015, requiring upgraded credit card readers at retail point-of-sale. EMV (also called Chip & Pin) makes it much harder and costlier for fraudsters to counterfeit physical credit cards. The result? Scammers have been flocking to the web where they can more easily pursue card-not-present (CNP) and mobile fraud—which are not protected by EMV.

As a result, CNP fraud is projected to more than double, from $10.7 billion in 2015 to $25.6 billion by 2020. (You didn’t expect the fraudsters to just fold their tents and go home, did you?) 

If you are in the eCommerce automotive, powersports, aftermarket products, or performance and accessories business, you may be feeling the effects. Here are 7 signs of growing fraud, warning you that your fraud prevention system likely needs a tune-up:

  1. Higher Chargebacks
  2. Increasing IT Complexity 

  3. Growing Product Losses 

  4. More Time Spent on Manual Reviews 

  5. Delayed Orders 

  6. Avoiding New Markets or Opportunities 

  7. Escalating Training Time

Still not sure? Here’s another rule of thumb to help you determine if you should schedule a check-up:

Just as you know it’s time to change your oil after 7,500 miles, it’s time for a fraud prevention tune-up if your business has been processing eCommerce transactions for 3 years or 100,000 transactions. Otherwise, you could be wasting money and losing profits. So what do you need to get started? 

Every mechanic will tell you that you need the right tools for the job. It’s no different for fraud prevention. Download our Automotive & Powersports eBook “Does Your Fraud Prevention Need a Tune Up?” and learn about 6 proven tools to help your eCommerce operations improve profits and sales.

New Call-to-action

Topics
Share
TOP