Experts are predicting more e-commerce sales records will fall during the 2021 holiday shopping season. The Covid-19 pandemic shifted the expectations and behavior of consumers during the 2020 holiday season and a new report from antifraud provider Riskified shows how those changes have lingered or evolved heading into this year.
The report looks at some traditionally strong product categories that could experience continued strength this year (e.g., apparel, footwear and electronics). But amid concerns around supply chain issues that are causing delivery delays, the report predicts e-gift cards sales will surge again this year, despite that they are attractive targets for fraudsters. According to Riskified, e-gift card sales will rise 27 percent in 2021 compared to a year earlier. U.S. consumers will spend an average of $270 on digital versions of gift cards this year.
“While increasingly popular, most merchants still consider gift cards risky due to their digital fulfillment,” the report says. “Riskified has seen a significant decrease in the rate of fraud attempts, which may indicate that these orders are being over-declined as a result of risk averseness and reactive fraud analysis.
The report also looked at popular payment options and how their relative risk has been changing throughout the year. While the risk of credit cards holds steady throughout the year, the risk associated with Buy Now Pay Later, and ACH has dropped since January of 2021. One payment method that has seen an increase in attacks from the beginning of this year is e-wallets.
“Along with their growing adoption, e-wallets have become steadily riskier throughout 2021,” the report says. “Contrary to common belief, they are not fraud proof and their risk level has grown by almost 50 percent since January of this year.”