[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ background_color=”rgba(0,0,0,0.29)” global_colors_info=”{}”][et_pb_fullwidth_post_title meta=”off” featured_placement=”background” _builder_version=”4.16″ title_font=”|700||on|||||” title_text_color=”#ffffff” title_font_size=”30px” background_color=”rgba(0,0,0,0.15)” background_enable_image=”off” background_blend=”color” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ text_orientation=”center” custom_padding=”15%||15%” z_index_tablet=”0″ title_text_shadow_horizontal_length_tablet=”0px” title_text_shadow_vertical_length_tablet=”0px” title_text_shadow_blur_strength_tablet=”1px” meta_text_shadow_horizontal_length_tablet=”0px” meta_text_shadow_vertical_length_tablet=”0px” meta_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” text_shadow_style=”preset2″ parallax_effect=”on” module_bg_color=”rgba(255,255,255,0)” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”][\/et_pb_fullwidth_post_title][\/et_pb_section][et_pb_section fb_built=”1″ admin_label=”section” _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row admin_label=”row” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” custom_padding=”0px|0px|18.95px|0px|false|false” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Preamble” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n
The Department of Homeland Security (DHS) and the National Cyber Security Alliance (NCSA) work together every October to spread the word about how important cybersecurity is to everyone, especially retail store owners. This year\u2019s theme is\u00a0\u201cDo Your Part. #Be CyberSmart.\u201d<\/a>\u00a0\u00a0<\/em><\/p>\n In October, Retail Science is featuring two stories on cybersecurity. The first story looks at what types of cybercrime target retail businesses. The second story offers independent business owners suggestions on how to combat the problems and run successful and secure stores.\u00a0\u00a0<\/em><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Pandemic Fuels” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n Like it or not, the pandemic reshaped the retail landscape and spurred e-commerce growth like nothing before. Because of it, the use of online sales spread faster than the virus and e-commerce fraud increased just as fast. Data shows that <\/span>cybercrime cost the world more than $1 trillion in 2020<\/span><\/a>.\u00a0All this\u00a0means\u00a0is that\u00a0retailers using\u00a0both\u00a0online and in-store sales are dealing with more fraud\u00a0in more forms\u00a0than ever.<\/span>\u00a0<\/span><\/p>\n Gone are the days when merchants only had to worry about counterfeit bills and bad checks.\u00a0Nowadays, consumers can purchase items with a wave of their watch\u00a0which is just one of\u00a0an array of payment options that must be monitored.<\/span>\u00a0<\/span><\/p>\n Retail Dive\u00a0<\/span><\/i>reported that Juniper\u00a0research found\u00a0that\u00a0<\/span>e-commerce retailers could lose over $20 billion<\/span><\/a> this year through new forms of e-commerce fraud. That\u2019s an 18% increase over 2020 when the pandemic caused online sales to skyrocket reaching nearly <\/span>$791 billion.\u00a0<\/span><\/a>That accounts for nearly 14% of all retail sales.<\/span>\u00a0<\/span><\/p>\n It\u2019s not getting any better, either. Credit agency Transunion reported in August that suspected online fraud\u00a0over the first four months of 2021\u00a0more than doubled\u00a0the previous year.\u00a0<\/span>\u00a0<\/span><\/p>\n Ransomware, identity theft,\u00a0friendly\u00a0fraud, account takeovers,\u00a0and \u201cpharming\u201d are just a few of the\u00a0dangers facing online shoppers and merchants this year and in the future.\u00a0Some are new, some have just evolved with time.<\/span>\u00a0<\/span><\/p>\n The result has given birth to what has been labeled as a global Fraud Economy.\u00a0So,\u00a0increasing\u00a0your\u00a0awareness of the issue and your\u00a0store\u2019s network security budget might just protect your\u00a0e-commerce growth and profits\u00a0against e-commerce fraud.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Identity theft ” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n To the average shopper,\u00a0identity theft may seem like a consumer-focused hazard with fraudulent purchases made against\u00a0their\u00a0ill-gotten credit credentials. However,\u00a0as merchants well know,\u00a0the\u00a0\u201cpurchased\u201d\u00a0merchandise is effectively stolen from stores.<\/span>\u00a0<\/span><\/p>\n Consumers aren\u2019t typically liable for credit card fraud in cases of stolen identity. Most often, once fraudulent purchases are made with stolen credentials, credit card companies cancel the old card and issue the consumer a new one.<\/span>\u00a0<\/span><\/p>\n Consumers have\u00a0additional\u00a0protection\u00a0from the Fair Credit Billing Act, which limits their liability of a lost or stolen credit card to $50.<\/span>\u00a0<\/span><\/p>\n The result is, merchants or banks are left to foot the bill for fraudulent purchases depending on the nature of the transaction. Banks are usually responsible in cases of either stolen or forged credit cards being used to make purchases in stores.<\/span>\u00a0<\/span><\/p>\n Merchants are likely to be liable for fraudulent purchases made on older magnetic card swipe payment terminals. They\u2019re also are often liable in \u201ccard-not-present\u201d transactions which make up an increasingly large percentage of e-commerce transactions today. This is when stores take credit card numbers either over the phone or on e-commerce sites for a purchase. So, when a merchant is a victim of this kind of fraud, they not only lose the sale money, but the item is also essentially stolen.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Friendly fraud ” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n Friendly fraud is another name for chargebacks. This is when a consumer deliberately steals from a merchant by making a purchase and then claiming to the bank or credit card company it was a fraudulent charge to their account. <\/span>\u00a0<\/span><\/p>\n In these cases, merchants can not only lose the merchandise, they can be hit with fees that can range from $20 to $100 per transaction. Additionally, they can be fined up to roughly $10,000 if the monthly chargeback rates exceed predetermined levels. Merchants can have their accounts terminated by credit card processors if their chargeback rates become problematic, too. As a result, they would be unable to process credit or debit purchases and would essentially be limited to cash-and-carry sales.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Pharming is growing ” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n By now, pretty much everybody has heard of \u201cphishing\u201d \u2013 the practice of sending out bogus emails to gain information or access to websites or business networks. Well, now we have \u201cpharming,\u201d a much more evolved form of phishing. It involves the redirection of website traffic from a legitimate site, like your e-commerce website, to fake sites. These sites can be used to steal usernames, passwords and other personal information. The can also load malware onto the operator\u2019s computer.<\/span>\u00a0<\/span><\/p>\n Pharmers\u00a0most\u00a0often target websites\u00a0of\u00a0banks, online payment platforms, or\u00a0retail\u00a0e-commerce sites.<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][et_pb_text admin_label=”Retail in the crosshairs ” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n The Verizon 2020 Data Breach Investigations Report says 43% of cyberattacks target small businesses. Accenture Security adds that only 14% of small businesses are equipped to deal with an attack.<\/span>\u00a0<\/span><\/p>\n Pharmers and other e-commerce fraudsters are prevalent in retail today because, many merchants are new to online sales and not sophisticated in their operations or vulnerabilities. This inexperience led to fraudsters increasing their take in 2020. As internet traffic surged and the amount of money spent online nearly doubled, the average value of <\/span>attempted fraudulent purchases rose 69%<\/span><\/a> since 2019.<\/span>\u00a0<\/span><\/p>\nPandemic Fuels E-commerce and Fraud Growth<\/span><\/span>\u00a0<\/span> <\/span><\/h2>\n
Identity\u00a0<\/span>t<\/span>heft<\/span><\/span>\u00a0<\/span><\/h2>\n
Friendly\u00a0<\/span>f<\/span>raud<\/span><\/span>\u00a0<\/span><\/h2>\n
Pharming is\u00a0<\/span>growing<\/span><\/span>\u00a0<\/span><\/h2>\n
Retail in the crosshairs<\/span><\/span>\u00a0<\/span><\/h2>\n