Top insights from the Black Friday webinar – safeguarding eCommerce against fraud

1. The Black Friday & Cyber Monday boom

Black Friday and Cyber Monday have evolved into global shopping phenomena, generating record-breaking sales each year.

• In 2023, Black Friday sales reached $9.8 billion globally, up by 7.5% from 2022, while Cyber Monday raked in $12 billion, a 9.6% increase year-over-year.
• Cyberweek 2023 saw sales soar to $38 billion, and projections for 2024 suggest this number may exceed $50 billion for the first time.

2. Shopper trends

Consumer behavior during the holiday season reflects the growing dominance of online shopping:

• In the US, the average shopper spent $460 across Black Friday and Cyber Monday.
• Over 200 million shoppers participated globally, with 134 million opting for online purchases.

3. The fraud epidemic: A holiday hazard

The holiday shopping rush is not just a boon for retailers but also a prime hunting ground for fraudsters. The webinar highlighted alarming trends:

• A 22% spike in purchase scams was recorded in 2023, with victims losing an average of $1,200 per fraudulent transaction.
• In the US, 11.6% more fraudulent eCommerce transactions were suspected during the holiday shopping season.
• 59% of online merchants reported an increase in fraud over the last year, with 75% of eCommerce platforms experiencing a surge in fraud around Black Friday and Cyber Monday.

4. Impersonation fraud: The leading threat

In 2024, 82% of all fraud cases stemmed from impersonation, where fraudsters posed as legitimate users. This phenomenon now affects 1 in every 20 verifications. The eCommerce sector experiences the highest fraud rates across all industries, with 20% of sessions deemed fraudulent.

5. The cost of fraud

The financial toll on eCommerce platforms is staggering:

• $48 billion in losses were attributed to fraud in 2023 alone.
• 85% of consumers expect platforms to reimburse fraud-related losses, making financial liability and reputational damage pressing concerns. To safeguard eCommerce platforms against fraud, Veriff offers a comprehensive identity verification suite, leveraging advanced technologies such as:
• Assisted Image Capture: Enhances user verification by ensuring high-quality document and image submission.
• Biometric Authentication: Matches user-provided images to official IDs for foolproof verification.
• Real-time Document Verification: Identifies forgeries and inconsistencies instantly.
• Cross-linking and Behavioral Analysis: Detects patterns across user data to flag suspicious activity.
• Effortless User Experience: Seamless integration across web and mobile platforms ensures a smooth onboarding process for users.

Veriff’s solutions are trusted by industry leaders in sectors like gaming, financial services, crypto, marketplaces, and mobility.

6. Recommendations from the webinar

The experts emphasized adopting a multi-layered fraud prevention strategy to counter holiday fraud effectively. Key measures include:

• AI and Machine Learning: Leverage advanced algorithms to identify fraud patterns and anomalies.
• Behavioral Analysis: Monitor user behavior to detect red flags in real-time.
• Risk Indicators: Use data-driven insights to assess the likelihood of fraudulent activities.
• Real-time Monitoring: Stay ahead of fraudsters by implementing 24/7 activity tracking.

7. What’s next?

As Black Friday looms closer, Veriff encourages businesses to prepare for the shopping frenzy by strengthening their fraud prevention strategies. For those eager to explore Veriff’s solutions, the platform offers a 15-day free trial, enabling businesses to test its features without commitment.

Missed the webinar? Don’t worry! The full session is available on demand. Stay tuned for our next webinar, where we’ll delve deeper into the holiday shopping trends and their implications for eCommerce.

Happy shopping – and stay vigilant!