Online marketplaces are currently battling fraud on multiple fronts

Online payment fraud still a significant thorn for online marketplaces: research. Source: pexels.com

Ravelin has found that online payment fraud is still the number-one fraud concern for digital marketplace organisations, with over 3/4 of firms ranking it as one of their most significant threats.

Online payment fraud is a particular concern for marketplaces that connect buyers with third-party sellers of goods and services. For instance, 81% of goods and services marketplace organisations say that online payment fraud is one of their biggest threats, compared with 78% for taxi app companies and 68% for online food delivery companies.

Account takeover, where fraudsters obtain a customer’s account login details and use them for illegal activity, is another significant threat facing these companies. In fact, 79% of taxi app firms, 74% of food delivery services and 69% of goods and services marketplaces all say that account takeover is one of their biggest fraud threats.

For online food delivery companies in particular, account takeover is a significant problem. Account takeover appears in the top three list of fraud threats for 74% of online food delivery companies, which is higher than the proportion of companies in the same sector (68%) listing online payment fraud as one of their top three threats.

We’ve reported that over 3/4 of cashless transactions in DACH region are now contactless.

SEE ALSO:

• Business ideas 2021: top 5 profitable opportunities
• How to avoid phishing scams
• Lottery, sweepstakes and competition scams explained