3 Risk trends in Ecommerce that FRMs can address in 2022

by Miles Education Make an impact. Lead,Excel, Serve

The E-commerce industry has been severely plagued by data breaches and fraud issues. As the frauds have poured into 2022, it is expected that it would jump to $ 206 million by 2025. Along with these adverse fraud trends has also come opportunities for FRM professionals as the ecommerce industry is expected to grow $ 6.5 trillion by 2030. Understanding the vital threat, many financial professionals are opting for FRM courses to tell the ecommerce industry what they are up against and arm the online merchants with knowledge that they need to avert data breaches, credential protection and other monetary frauds from their prospective consumers. 

Loyalty Program

With the pandemic dust settling down, travelers and shoppers saw a sigh of relief as lockdowns were relaxed and international borders started to open up for movement. But what met them as unpleasant surprises is the meteoric fraudulent activities at the loyalty points where people racked up for booking hotels and holiday tickets with retailers as they became a prime target. Due to pandemic and continuous lockdowns, most consumers did not check their loyalty points and once when they bounced back to book tickets, they found fraudsters are using them for personal gains on the dark web. Points are somewhere not monitored like bank assets or accounts, hence an FRM can advise retailers to replace those points in a timely manner to avoid any hacking incidents. 

Social Media Commerce

The value of social media which was valued at $27 Billion in 2020 and is expected to rise to $604 Billion by 2027. For most retailers, social media is one of the attractive platforms but it is also equally an appealing platform for fraudsters too. This means that retailers and social media commerce managers need to keep a sharp eye on the various risks rising in the platform. The threat of impostor accounts could impersonate brands and drive consumers to make purchases or even lead to reselling data/account takeover (ATO) on the dark web. Remember, the ATO is not just a threat for social media consumers but also for those who are not phishing victims. Here, FRM managers can help retailers and ecommerce traders to adapt brand monitors to spot brand impersonators, report web hosters and caution customers about fake advertisements. This can greatly reduce negative feedback or reviews from prospective customers. According to State of Consumer Attitude, Fraud & CX in 2021 alone there were over 34% negative reviews and 40% divorced shopping with the brand.

Z Generation Vulnerability 

Z Generation are at big risk as they are digital natives and their deep experience makes them prone to digital vulnerability of either credential theft or account takeover. According to a survey in 2021, most baby boomers and adults were locked out of a hijacked account or having unauthorized credit cards or bank charges. At this stage FRM training is critical for FRM professionals to build strategies and fraud control rules tailored to Z generation users as they can easily leave a negative comment or divorce a brand, which can weaken the ecommerce platform. 

Whatever the kind of fraud, the E-commerce sector is in high need of professionals with an FRM certification. To achieve this, you can subscribe to the best and original Schweser-Miles CFA Study material to ace the dreadful financial risk management exam to gain a global FRM certification. 

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About Miles Education Advanced   Make an impact. Lead,Excel, Serve

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Joined APSense since, December 23rd, 2019, From Hyderabad, India.

Created on Jun 3rd 2022 06:53. Viewed 106 times.


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