The factors that make e-commerce so appealing to founders can also make fledgling businesses easy targets for fraud once they start to grow. The ease of access to worldwide markets, the ability to connect quickly with target customers and the potential to solve real-world problems like sustainability can act like rocket fuel for new businesses, putting them in the spotlight and drawing the attention of new customers, as well as organized fraudsters.
The problem is that new retailers may not realize that they need advanced fraud protection until there’s a crisis, such as a spate of chargebacks, being cut off from their payment processing services or developing a reputation among customers as a brand that’s difficult to shop with. Because digital fraud, including e-commerce fraud, increased by more than 52% from 2019 through 2021, even small retailers need to ensure that their fraud-prevention practices can protect their revenue, customer relationships and business continuity as they grow.