Fraud is a serious problem and a constant source of worry for businesses across the board, but it’s particularly concerning for retailers. As operations and payments become more mobile, on-demand and digital, new frontiers have emerged for fraudsters to exploit - a prime example being online transactions. Fraud in this space is called Card-Not-Present (CNP) fraud, which occurs when a transaction is made without a physical card being used. CNP fraud has skyrocketed during the COVID-19 pandemic, with many people stuck indoors and preferring to shop online in an effort to avoid crowded stores and shopping centers. An overall increase in online shopping is certainly good news for e-commerce merchants, but it also means they’re now having to focus on two key things at the same time - delivering a great shopping experience for consumers while simultaneously implementing an effective fraud prevention solution.
Studies show that 51% of consumers would accept whatever security measures were required to keep their data secure, regardless of how poorly it impacted their user experience. However, a recent report by Experian discovered that consumers consistently said they would abandon a transaction if they had to wait more than 30 seconds for it to go through.