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SIGNIFYD REPORT

Crushing ecommerce in the first-party fraud and abuse era

How online retailers and brands can overcome fraud’s latest growth industry:
First‑party fraud and abuse

crushing-ecommerce-in-the-first-party-fraud-abuse-era

Uncovering the growing threat of first-party fraud and consumer abuse in ecommerce

%

of merchants consider first-party fraud one of the biggest threats to their businesses.

%

of merchants identified refund and policy abuse as a top threat.

%

of merchants have seen an increase in first-party fraud in the past 12 months.

 

Why you need to read this report:

The evolving nature of first-party fraud has turned it into a multibillion-dollar threat. Organized fraud rings are leveraging digital loopholes, exploiting return policies, and using tactics such as refund-as-a-service platforms to target retailers. If your business isn't prepared, you risk significant financial loss and damage to your reputation.

This report equips ecommerce leaders with the insights needed to defend against fraud and safeguard their bottom line. Understand how fraud trends vary across key verticals, from luxury goods to home electronics, and learn the strategies that leading retailers are using to stay ahead.

 

What’s inside:

  • A deep dive into the rise of first-party fraud and consumer abuse
  • Industry-specific fraud trends across apparel, electronics, home goods, luxury, beauty and grocery (see sneak peek here)
  • The impact of organized fraud rings
  • Data-backed insights and real-life examples from leading ecommerce merchants
  • How merchants can prosper amid growing threats

Key industry insights: fraud and abuse trends across ecommerce verticals

Apparel

False returns and wardrobing schemes drove a 30% increase in fraud pressure over the past year.

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 as fraudsters exploited refund and return policies.

Home goods

With a 32.3% surge in fraud pressure, the vertical ranked among the most heavily targeted.

Beauty and Cosmetics

Consumer abuse rose 22% during a peak period before falling by as much as 50% in the following months.

Grocery

Online grocery sales surged by 23%, while consumer abuse fluctuated—at one point dropping 32% year over year.