Popular for last minute holiday bookings, DIY sales and chocolate, retailers rely on the Easter shopping boom. Last year, UK retailers across the board reported increases in sales during this period.
Most retailers plan their strategies for peak shopping periods like the Easter holiday – and it’s important that every revenue opportunity is maximised while the customer experience is protected and maintained. This includes offering the fastest and most customer-centric delivery propositions on the market.
While retailers dedicate additional resources to ensure prompt deliveries at Easter, they also need to plan for a potential increase in payment fraud attacks at this time.
Special deliveries with short time spans between transaction and delivery will always be favoured by criminals as they provide less time in which to verify orders. Once goods are received, criminals can quickly offload them on the black market. This issue is more pronounced during the 48 hour shopping period immediately prior to the Easter or Christmas holidays.
ReD’s data typically shows that daily attempted fraud rates almost double across the final few days of online delivery in the run up to Easter and Christmas. Fraudsters leverage the huge spike in deliveries over a short time span to their advantage, while a desire to release seasonal goods quickly can mean that standard fraud controls are sometimes relaxed.
Marketing departments may have pushed hard to get enhanced service and delivery options in place, but have they considered the implications for their risk colleagues? A ‘free delivery’ promotion that has not been communicated to the risk department may mean that risk rules in place against the delivery charges don’t fire, leaving the retailer more vulnerable to fraud.
ReD works closely with clients to customise their fraud strategies by product, postcode and geography, adjusting those strategies for seasonal peaks and marketing campaigns to prevent fraud while ensuring that genuine sales are not blocked.
Kieran Macey, Head of Risk for EMEA at ReD