Shopping online has always been a nice convenience, but it became a virtual lifeline for both businesses and consumers during the pandemic. Unfortunately, it also led to an increase in fraud.

Account takeover (ATO) is skyrocketing for e-commerce customers and reshipping scams have been prevalent for years. E-commerce retailers are at risk of losing more than $20 billion in 2021 due to fraud.

The average damage from a reshipping (a.k.a. package mule) scheme, according to researchers, is more than $1,100 per cardholder. These losses are easily preventable when consumers adopt strong passwords to protect their accounts, making it difficult for cybercriminals to perpetrate ATO.

However, merchants are ultimately the gatekeeper. What’s the best way to tackle this to protect consumers — and your bottom line?

First let’s take a look at how reshipping scams work. The process is pretty straightforward. Criminals gain access to a customer’s account and then use their information to purchase products, usually without changing any of the victim’s personal information so they remain undetected.

[See also: Protection from Advanced Threats at the Speed of Business]

Once the order is placed and shipped to the address on file, the cybercriminal accesses the account again to monitor when the order will be shipped. Once they have confirmed the goods are on their way, they will reach out to the shipper to redirect the shipment to an alternate address where they can easily…

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