Monica Eaton’s Monthly Column for Newsmax Finance
US consumers are expected to place $38 billion in food orders via mobile device next year alone. Clearly, there’s plenty of opportunity to be hand by merchants in this fast-growing market. It’s not all good news, though: more card-not-present orders translates to more fraud and chargebacks, too.
Newsmax is a leading new outlet for personal finance and related topics. Chargebacks911® COO Monica Eaton is a regular contributor to the site. For the latest installment of her monthly column, she tackles the risk fraud presents to the online food delivery market.
Fraud is a serious concern for entrepreneurs in any space. However, it’s especially pressing in the food and beverage market. Increased activity on mobile apps creates opportunities for fraudsters. Account takeover, card testing, and gift card fraud are all seeing rapid increases, and mobile food ordering is at the center of the matter. This, in turn, causes problems for everyone involved.
“The food and beverage industry endured a 170 percent increase in policy abuse in 2017. We can trace much of that loss to friendly fraud, a post-transactional threat that relies on customers misusing their right to file a chargeback against suspected fraud or abuse.”
Merchants can’t afford to bow-out of this market anymore than they can afford to ignore fraud. To resolve this problem, merchants need to take action.
