Building on previous research into retailer fraud, the Forter report offers some insight into which parts of retailers’ operations are especially vulnerable to fraud, chief among them being loyalty programs. According to the report, consumers’ growing expectations have resulted in retailers placing fewer security measures, which have turned loyalty points into digital currency for cybercriminals.
The problem is fraud imposes a hefty cost on retailers. Per a LexisNexis Risk Solutions report, each dollar of fraud costs retailers $3.13, an increase from $2.40 in 2016. Analysts expect card-not-present fraud to increase to $130 billion by 2023.
