MEXICO–(BUSINESS WIRE)–As online retailers across Mexico operate through a year in which e-commerce is expected to continue its rapid growth, they will seek to increase their online revenue amid growing fraud attacks. Fraud pressure reached its pandemic peak at a level 220% higher than before the pandemic. This has been accompanied by a transformation in the types of attacks retailers face, according to a detailed account of fraud trends in Mexico released today by commerce protection market leader Signifyd.
Other key findings of the e-book “El crecimiento del e-commerce en México y el fraud: Nuevas oportunidades y nuevos desafíos” include:
Account takeover fraud has increased, reaching a 239% increase in 2021.
Daring fraudsters are finding new ways to digitally steal products from retailers’ physical stores. Fraudulent attacks launched from in-store kiosks increased 149% year over year.
Automated bot attacks increased 146% in 2020, a global trend that shows little sign of slowing down.
Fraudsters have broadened their targets and are increasingly attacking the entire purchase journey, from account creation to post-purchase returns, in an effort to unsettle merchants when it comes to fraud prevention.
The high level of fraud pressure and the variety of attack vectors have prompted banks that facilitate online payments to become cautious in order approvals, low order authorization rates in Mexico indicate.
The trends appear to be signs of the growing sophistication of e-commerce fraud in Mexico. As retailers improve their defenses against fraud, fraudsters and consumers looking to take advantage of retailers have reacted accordingly.
“Overall, what I’ve noticed this year is that the fraud we’re seeing has become more complex, especially with the increase in the frequency of account takeover fraud,” said Luz Cervantes. , Head of Risk Intelligence at Signifyd. “So many other accounts can and are compromised on every level and I don’t see it stopping anytime soon.”
The COVID-19 pandemic and resulting lockdowns have ushered in a new “golden era of e-commerce” – and plenty of room for fraud. As consumers turned to shopping online more frequently, e-commerce became a larger share of total retail revenue.
This creates an additional challenge for Mexican retailers, as online order authorization and approval rates lag behind other regions of the world. Mexican banks refuse 37% of orders at the authorization stage, the e-book states.
Signifyd’s eBook doesn’t stop at showcasing the challenges retailers will face in 2022. The report also highlights new approaches to fraud by forward-looking retailers. It offers a guide on how to increase order approvals and a framework for thinking about the pressure of fraud throughout the year and by various retail verticals.
Signifyd provides an end-to-end commerce protection platform that leverages its commerce network to maximize conversion, automate the customer experience, and eliminate fraud and consumer abuse for retailers. Signifyd’s customers are on the Fortune 1000 and Digital Commerce 360 Top 1000 lists. In 2022, it was named the #1 Payment Security and Fraud Prevention Provider among the Top 1000 Retailers by Digital Commerce 360. Signifyd has its headquarters in San Jose, California, with offices in Denver, New York, Mexico City, Belfast and London.