SIGNIFYD REPORT
The State of Fraud and Abuse 2024
Learn more about the emerging fraud trends impacting ecommerce in 2024, from the rise of promo abuse and first‑party fraud to the growing industrialization of fraud and the impact of AI.
Are you keeping up with the latest threats?
The fraud landscape is constantly changing, but rest assured, we have the data, experts and signals to provide you with reliable and ongoing coverage of changes and trends in the ecommerce landscape.
In this report, we'll cover the fraud trends and the prevention tactics you need to build into your 2024 business strategy.
Industrialization of fraud
Global fraud rings, now operating like Fortune 500 companies, are increasingly targeting ecommerce with sophisticated and some disturbing tactics.
Rise of promo abuse & first-party fraud
Fraudsters are shifting from payment fraud to exploiting refund and return policies, with over 60% of online brands reporting increased first-party fraud.
AI’s role in fraud
Fraud rings use AI to scale operations and enhance phishing, while fraud fighters use AI to detect and block illegitimate transactions proactively.
Optimizing business results
Modern fraud teams are focusing more on approving legitimate orders to improve customer experience and lifetime value, shifting from a purely defensive role to proactive business optimization.
The growing menace of online fraud
According to Signifyd data, fraud pressure rose 19% between the first half of 2023 and the first half of this year.
According to MRC, 63% of merchants cite an increase in first-party misuse (FPM) over the past year.
Juniper Research reported that online brands lost more than $48 billion to ecommerce fraud in 2023, up from roughly $41 billion in 2022.
What’s inside:
Download the report to stay ahead of fraud trends and protect revenue.
In this report, retailers will learn about:
- Fraud’s growing sophistication
- Consumer abuse trends by industry
- The industrialization of fraud
- The rise of first-party fraud
- How AI is changing fraud
- The new wave of fraud protection
- And more!
Key industry insights: fraud and abuse trends across ecommerce verticals
Apparel
Fraud pressure surged by 30% in the first half of 2024, driven by false returns and wardrobing schemes.
Luxury goods
Despite strong sales, fraud pressure remained high, with abuse schemes targeting designer goods up 9.4% year-over-year.
Electronics
Electronics saw a dramatic 45% spike in consumer abuse in March 2024, as fraudsters exploited refund and return policies.
Home goods
Fraud pressure skyrocketed by 32.3% in the first half of 2024, making it one of the hardest-hit verticals.
Beauty and Cosmetics
Consumer abuse saw a 22% increase in January 2024, before declining by up to 50% by mid-year.
Grocery
Online grocery sales surged by 23% in early 2024, but consumer abuse fluctuated, peaking at a 32% year-over-year decrease in May.
