Holiday Season: A Gift in Disguise for Scammers

The mere mention of jingle bells, turkey feasts and door-busting horde enlighten our mind. The holiday season is around the corner with frantic shoppers aiming to secure the most effective deals. This eventful time of the year call fraudsters who are exploiting the vulnerabilities of consumer’s data floating in the digital space.

rise in data breaches

Will Rise in Data Breaches Impact Holiday Shopping in 2017?

In the first half of 2017, a massive rise of 13% in data breaches has been reported. What is more alarming, this staggering figure does not include the recent Equifax data breach that compromised personal data of 143 Million consumers. Hacking at the US Securities and Exchange Commission System (SEC) has further increased the data security concern of businesses. Such significant breaches will lead to quantum increment in fraud incidents during the holiday season, especially ID theft related.
The surge in cyber-attacks is likely to curb the typical optimism shown by retailers during this thrilling time of the year. Organizations are trying to cope with security concerns by strengthening their mechanism. Additionally, Cyber Monday is arriving early this year and a huge escalation is expected in online retail sales followed by an avalanche of disputes and chargeback. Organizations need to gear up their fraud teams and chargeback operations.

Spot Fraud before they Spoil your Holiday Season

Debit/Credit Card Fraud: It is unnerving, but debit/credit card fraud is a soaring concern that organizations have to battle out on two platforms: in-store and online. According to a report, businesses tend to lose a total of $7.86 Billion to fraud in a single year alone.
Card-Not-Present Fraud: When the holiday season is in full swing, card-not-present fraud becomes a favorite fraud amongst criminals. Botnets, computers being instructed by a virus that automatically perform tasks like sending spam, has become a reason for worry.
Identity Theft Fraud: Holiday season is the prime time for identity theft fraud. Fraudster uses an array of technology to steal customer’s private information.
Impersonation Account: Skimmers create impersonation accounts that look like real brand account, by using similar spellings and replacing characters.
Phishing Scams: Phishing scams are wreaking havoc, as it has been a favorite tool of fraudsters. The scams include fake receipts, invoices, shipping status alerts and deals.

 

Data Breaches impact millions of records making customer’s trust and assurance volatile, thereby altering the face of the holiday season. Organizations that are not prepared are likely to observe increasing fraud numbers. This has emerged as one of the most worrisome situations for merchants. Imbibing a proactive approach and devising an effective defense mechanism will help organizations prevent from presenting countless opportunities to fraudsters. The time demands to have comprehensive fraud detection and prevention solutions to lower down the ever-evolving scam curve and enjoy the festive season.

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