The eCommerce industry has dramatically expanded in Europe, creating a shift from in store purchases to digital and online sales. With that increase in online transactions and sales, new opportunities for fraudulent activity are slated to increase. According to Lexis Nexis, merchants lost 0.68% in 2014 compared to 0.51% in 2013. This dramatic percentage continues to grow per year due to increase of consumer interest in new products and new channels of transactions.
In 2015, international merchants are anticipated to increase their sales due to a rebounding economy and interest in online spending, but that does not eliminate the possibility of large volume eCommerce merchants to be affected by fraud loss and penalties. It is difficult to anticipate what steps will be taken to penalize the consumers who are stealing from the very merchants trying to provide their services.
Records indicate that fraud is expected to double, following a horrifying trend of merchants losing revenue and reprimanded with reputation ruining analytics. In 2015 what needs to happen is the recognition of consumers taking responsibility versus the merchant. The reputation of an eCommerce merchant relies on the credibility of their product and customer service. Once financial institutions such as a bank files a claim against the merchant, the merchant begins a tedious and diminishing process placed upon them that ultimately hinders their reputation.
