The increase in e-commerce fraud forces big companies to "divert" resources to cyber-prevention instead of business development. Companies that offer B2B and B2C products are most affected. The scenario designed by Stripe 26 Jul 2022 L. O.
The war against online scams presents the bill to global business. And it's a hefty bill. 72% of the largest companies are forced to "divert" internal resources in the fight against fraud while 58% postpone the growth of investment plans. It emerges from the Stripe report that e-commerce scams are likely to send businesses into trouble, especially those that offer B2B and B2C products. Index of topics • Online fraud, the local "models" • The "indirect" impact on companies • More fraud, more difficult choices • Strategies for the counteroffensive Online fraud, the local "models" "Many aspects of the global economy are beyond the control of individual companies: they cannot curb inflation or solve supply chain bottlenecks or the consequences of war. But they can optimize the way they run their daily business," protecting them from the risks of online scams.
Combining data from billions of transactions on the Stripe network from 2019 to 2021, the research illustrates some patterns of global fraud within different locations and business models. The "indirect" impact on companies Nearly three-quarters of companies have diverted engineering resources and more than half have reduced expansion plans due to fraud problems. Similarly, 72% think they will suffer more fraud losses in 2022 than in 2021. Finally, strong emphasis was placed on the volume and level of sophistication of fraud, which varies greatly from one market to another: consequently, defence instruments must be able to adapt to local fraud patterns. France, for example, has almost twice the fraud rate of Germany, while Singapore has recorded a rate halved compared to the wider Asia-Pacific region. More fraud, more difficult choices More than half of the companies surveyed reported that fraud is a concern that is set to grow in the future. Companies that offer products or services on subscription or subscription models (both B2B and B2c) are the most prone to fraud, since being "the higher the probability that they are branded products or services of household products, it is easier for fraudsters to resell these same goods or services once stolen (for example, by purchasing a digital subscription with a stolen credit card, and then sell it at a lower price). Strategies for the counteroffensive Stripe's report identified possible scenarios for setting up anti-fraud models depending on the margins of each individual company: in summary, the higher the profit margins, the less sensitive the anti-fraud model should be, since the greater the likelihood of errors by buyers. Companies can also mitigate the risk of fraud through a careful manual review of each reported charge, but that would require a massive commitment of human resources that scale-ups and startups often can't afford. Scheduled updates to Radar for Fraude Teams' machine learning models (Stripe's tool) are now able to block even more scammers at the source by letting more legitimate customers through. Stripe estimates that a single incremental update can block fraudulent transactions worth $40 million.