Published: Thursday November 08, 2018
A blog post by Mike McDonagh, Business Development Manager, GBG
Recent figures from the Office for National Statistics (ONS) reveal that more than 3,000 UK high street stores have closed down since 2014.
When we consider the number of prolific British chain stores to hit the national news for going into administration in recent years – BHS and Toys R Us, to name a few – this figure is hardly a surprise.
The rise in online shopping and crippling business rates are often cited by retail experts as the main reasons for the closures of so many bricks and mortars stores.
There’s no doubt about it, online retail has transformed how we shop. With four out of five UK adults – equivalent to 37 million people – owning a smartphone, consumers have constant access to their favourite brands, at the touch of a button, 24 hours a day.
In a recent study into global eCommerce trends, location data experts, Loqate, a GBG Solution, found sales from online-only retailers have grown a staggering 24 times faster than those from bricks-and-mortar retailers, over the past 5 years.
Whilst the ease of online retail, virtual personal assistants and same-day deliveries is making our lives more efficient and convenient, it’s also a golden ticket for one particular group of people: Fraudsters.
Fraud increases at Christmas
As we approach the holiday season, the inevitable increase in spending habits occurs. But unfortunately, so does the annual surge in fraud across the retail sector.
We know for retailers, the chargebacks, loss of product, loss of revenue, and damage to brand reputation amounts to considerable losses.
With more sophisticated forms of crime being developed and used against retailers all the time, 53 per cent of retail fraud is now cyber-enabled. This is accountable for around £100m in losses each year.
How to use technology to fight it
But how do you uncover these frauds? How can you spot the serial offenders? How can you mitigate risk and use data to your advantage?
GBG has deep experience of working with retailers of all sizes, to help protect their business and customers from fraudsters.
Our GBG Connexus solution uses data to help retailers ensure that when they take a customer order, a person is who they say they are.
The technology does a number of instant checks using online and offline data attributes, to give retailers a full 360 view.