In the pandemic year of 2020, the average value of attempted fraudulent purchases increased by 69 percent, according to Sift’s Q1 2021 Digital Trust & Safety Index report. In addition to an increase in the average value of fraudulent transactions, several merchant verticals—including lodging, omnichannel retail, and digital wallets—saw increases in fraud rates as well.
“Amid the Covid-19 pandemic, we saw a decade’s worth of e-commerce growth condensed into a single year...”
Additionally, Sift’s research found that fraudsters prefer to attack digital payment methods like e-gift cards, store credit, cryptocurrencies and in-app purchases rather than credit cards (though credit cards still account for the majority of e-commerce payments). And, the most popular targets of theft were also digital—video game virtual currency, cryptocurrency and site credits.
“Amid the Covid-19 pandemic, we saw a decade’s worth of e-commerce growth condensed into a single year,” said Marc Olesen, President and CEO of Sift. “At the same time, cybercriminals were lying in wait, ready to take advantage of millions of vulnerable targets and enacting new methods to steal from them. As fraud fighters seek to stay ahead of the Fraud Economy, they must adopt a Digital Trust & Safety strategy, which ensures they can both protect against abuse while reducing friction for legitimate purchases.”