Cyber Monday: A Mix of Fashion and Fraud
Fashionistas all across the land have been reaching into their Prada wallets in preparation for Cyber Monday, a shopping day that is quickly giving the famous Black Friday a run for its money. With fashion magazines like Glamour and GQ touting all the best places to find noteworthy apparel deals and over half of the population planning to shop online during the occasion, Cyber Monday is fast becoming THE day to buy clothing and accessories during the holiday season. But fraudsters are also on the hunt for haute couture deals, so merchants hoping to cash in on the fashion frenzy should sew up any loose seams in their fraud protection policies — especially considering 36% of the bottom cybersecurity performers in the retail industry this year are clothing merchants.
Fraud Faux Pas
As we mentioned in our article “Don’t Let Fraudsters Gobble Your Black Friday Earnings,” large online shopping days like Cyber Monday are extremely tempting to criminals looking to swoop in and score luxury goods at merchant and customers’ expense. But when retailers amp up their standard fraud protection policies to block the bad, they often block legitimate customers, as well — which has been shown in numerous studies to cost merchants just as much, if not more so, than fraudulent purchases due to both lost immediate revenue and frustrated customers who decide to shop elsewhere.
Like Black Friday, Cyber Monday sees more transactions than usual and it sees unpredictable spending and shipping patterns. Trusted customers who rarely make high-price purchases will load up on extravagant designer items they want shipped directly to family and friends. Traditional rule-based fraud prevention methods will often flag this kind of activity as fraudulent — and this is where machine learning fraud solutions are stepping in.
Machine Learning Keeps Up With Fraud Trends
RISK IDENT’s machine learning fraud prevention technology recognizes patterns and regularities in datasets and is then able to learn from each transaction and a rich pool of historical data. Thus, it can continually create new models and constantly evolving algorithms that allow merchants to authorize an aggressive acceptance strategy while spotting fraudulent transactions. Device fingerprinting is also a helpful tool in the fight against Cyber Monday fraud. Criminals look for big rewards fast and often use the same device for multiple fraudulent transactions. Data-rich fingerprinting solutions examine things like the browser, operating system, language and location to help identify the source and prevent a holiday payday for sinister-minded people.
For more information on how RISK IDENT’s machine learning technology can help your business minimize fraud on Cyber Monday and in the future, contact our team today at firstname.lastname@example.org. And happy holidays!