One of the most significant economic impacts of the COVID-19 pandemic was the dramatic increase in ecommerce as consumers avoided brick-and-mortar stores. The industry was quick to pivot and enable businesses to operate without requiring a physical presence, which helped them reduce operating costs and minimize their infrastructure. Not surprisingly, this was accompanied by a dramatic increase in online fraud schemes and cyberattacks.
New scams were erupting all over the web, ranging from identity theft, card-not-present, false chargebacks, account takeovers and more, putting businesses under great stress. During the first four months of 2021, digital fraud attempts rose 25 percent in the U.S. As businesses harness emerging technologies to enhance their security and verification processes, criminals are also utilizing tech-driven tools to bypass companies’ verification systems.