The Good end It is a good opportunity to regain the pace that sales had before the Covid-19 pandemic and that have now been complemented with digital channels.
While the e-commerce has represented an easy and simple alternative for merchants to get closer and reach more customers, it is also an opportunity for cybercrime.
Currently Mexico has the highest percentage of online fraud in the world with 3 percent. Only in the first quarter of 2021, Condusef registered 628,132 chargebacks in debit card operations in the country, which represented more than 323 million pesos that online businesses had to absorb.
This year, according to the Purchase Intention Report made by the Asociación Mexicana de Venta Online (AMVO), 3 out of 10 potential buyers will use an online channel for the first time, so sellers must have better practices, because with the increase in purchase orders, there is a greater vulnerability to fraud and chargebacks.
Online fraud prevention specialists agree that parallel to the opportunities this peak season represents, companies may also be more vulnerable to various risks.
During the webinar “Take care of your business: tips on payment methods and fraud strategy”, organized by the AMVO, experts discussed the challenges facing year-end purchases and the role that technology plays as an ally to prevent fraud threats and optimize payments.
According to José Andrés Chávez, CEO and co-founder of Bayonet, a fraud prevention platform for companies that carry out online operations, indicated that the most important thing for a business is to focus its strategies on good customers, that is, those who you intend to make a purchase legitimately, as they represent about 95% of your sales, the rest are potentially fraudulent users.
He pointed out that in the face of a historic Good End, an anti-fraud tool can help businesses grow, because the appetite for fraud – coming from a pandemic – has grown.
The co-founder of Bayonet explained that if for the trade it is not possible to acquire such a tool, there are two situations that the trade must take care of: anomalies and coincidences.
“That is, that the owner of the business identifies an email associated with different successful purchase transactions made in too short a period of time, repetitive purchases from a single zip code or when a user changes the delivery address, once their payment was made. accepted, among other patterns that may lead to suspect that there is fraud behind these purchases, “he said.
For his part, Erick MacKinney, Country Manager Mexico at Adyen recommended that businesses not make drastic changes before a sales season, “because the fraudster is counting on the business to make these changes and he wants to exploit that vulnerability. It is also important that the business identifies the bad buyer by contrast, since it stands out in these sales peaks, for this it can diversify the use of tools for fraud detection ”.
According to data from the AMVO, El Buen Fin 2020 generated 40.1 million transactions in online sales and left profits of more than 36 million pesos, only in digital sales channels. However, this year the expectations of electronic businesses are higher due to the growing adoption of technology and the good reception of Mexican consumers.
Faced with this scenario, the experts emphasized the importance of companies having risk-free payment flows and providing good shopping experiences for their customers.
Products with the highest percentage of fraud
According to data from Clearsale, an anti-fraud solutions company, there are products that have had a higher percentage of fraud attempts during 2021 such as tennis shoes and clothing with 26%, cell phones and computer equipment with 24%, screens with 20%, travel with 18% and sex toys with 12%.
In this regard, Víctor Islas, CEO of Clearsale, mentions that these types of items have advantages for criminals, since they are easy to resell, there are sizes to choose from and it is easy to get cash for them when they are sold at retail. This becomes a major obstacle in e-commerce for sellers, because for every 20 pesos of chargeback, they lose 51 pesos in time, fees, physical goods and shipping costs.
“An anti-fraud solution must not only stop fraudsters, it must also provide a frictionless and frustration-free shopping experience for genuine buyers, implementing solutions that improve their purchases every time they make a transaction,” added the director.
Start The good end, and at least 63% of users will make their payments by credit card and 43% by debit card, so it is important that sellers put together an anti-fraud team capable of dealing quickly and effectively with these blows, because although the main payment methods are by card, 42% of global transactions are made using alternative payment methods, and fraudsters have found new ways to exploit vulnerabilities in stores.
