Protecting the Digital Goods Experience
Rapid Growth in Revenue – and Fraudsters
Thanks to recent enhancements in technology and new consumer shopping behaviors, digital goods and services is a rapidly growing digital commerce market sector. But with that growth also comes increasing pressure from fraudsters looking to exploit the digital marketplace.
51%
Increase in digital goods and services Total Payment Volume (TPV) from 2020 to 2021
65%
Seller Collusion
Seller collusion is a simple method for various bad activities from fraudsters – ranging from money laundering and selling illegal items to feedback padding, which boosts the online profile of the account.
A “seller” has created multiple “buyer” profiles to make fraudulent purchases and leave fake reviews, boosting their profile in your marketplace’s visibility. Don’t let bad actors create fake accounts. It’s time to enable your business to expand profitability with Forter’s network of identities to protect against these fraudsters.
Why do fraudsters love digital goods and services?
Because there are generally no physical goods to deliver, the digital goods space is a common target for fraud and abuse. Digital goods and services refer to items that are stored, delivered and/or consumed in an electronic format. Examples include gift cards, airline tickets, hotel reservations, digital content and media services, cryptocurrencies, buyer/seller marketplaces and more.
Increasing Pressure
Following the Covid-19 pandemic, there is a continued rise in the popularity of digital goods – specifically ticketing and events. But the spike in popularity also means additional opportunities for fraudsters to exploit vulnerabilities and policies.
A user is exploiting the second-hand buying and selling nature of ticketing platforms to make purchases on stolen credit cards and resell them for a profit. Incorporate real-time fraud decisioning into your platform to make accurate fraud decisions and block out fraudsters.
Projected increase in digital goods and services Total Payment Volume (TPV) from 2021 to 2022
Card Testing
Fraudsters use a merchant’s website to see if credit cards are valid and usable. Digital goods are ideal for this form of fraud because fraudsters can expect instant responses and low-dollar purchases – which aren’t unusual for these platforms.
A “buyer” has used stolen information from multiple cards to successfully make small-scale purchases on your marketplace, paving the way for larger purchases down the line. Build trust into every step of your digital commerce journey using a single platform so you’ll be able to approve more customers accurately and breathe easier thanks to an automated fraud solution.
The Way Forward: Guaranteed Outcomes
Protect digital goods from falling vulnerable to fraudsters
Armed with real-time decisioning Forter accurately identifies fraud before it happens, stopping card testing, account takeover, seller collusion and more. The time is now to invest in fraud prevention that delivers the most accurate decisions, protecting your business, your customer experience and, most importantly, your customers and sellers.
Schedule a demo to learn how to protect your business and grow with Forter.
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Digital Goods & Services
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Table of Contents
The state of returns
Types of returns abuse
What does returns abuse cost you?
The way forward
Unique Challenges
Approve more good customers
Reduce
chargebacks
Deliver a seamless customer experience
With the largest dataset of online identities, a buyer that’s new to you is likely known to us. In 2021, Forter delivered an >99% approval rate for our digital goods industry clients.
Automated decisions save you time and money. Customers in digital goods industry see a chargeback rate of <15bps when switching to Forter.
Legacy rules and reviews can’t keep pace with growth in digital commerce. With our use of automation, you get real time decisions while delivering a superior customer experience.
The World’s Leading Brands Trust Forter
“Forter has been really impactful for us to improve better experience for our users, fewer of whom need to go through 3DS."
Candice Ong, Chief Commercial Officer
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Skewed Decline Metrics
In most cases, a spike in decline metrics is bad, potentially leaving good customers on the table. However, with the prevalence of bots and scripts rising, along with card testing, a spike in decline rates can actually be a good thing – meaning you’ve successfully stopped fraudsters.
Your reports show massive spikes in declines, creating confusion and leaving you wondering whether it was an attack – or if you just declined hundreds of legitimate, valuable customers. By using Forter’s Payment Fraud Protection Solution, you’ll be able to distinguish between fraudsters and genuine customers. Learn how we helped Fiverr slash decline rates by 50%.
