Online frauds against logistics firms up by 224%

In the age of digital and Covid-hit era, businesses are taking hit across industries. Nonetheless, they are still vying for online space in a bid to expand pool of customers and ramp up their revenues. Nothing wrong with that, however, the news that is going to follow is very distressing for these enterprises.

Close on the heels of pandemic which began last year, it is estimated that fraudsters have swindled logistics companies out of billions of dollars, till date. There is a whopping surge in digital fraud emanating from India against logistics companies, as per TransUnion Cibil.

“With the rush to go digital and capture the business, many companies, during the lockdown, went online almost instantly and overnight. However, little did they know, fraudsters will take full advantage of it and make their life miserable.” Said Shaleen Shrivastava, EVP and head of fraud, solutions and alternate data at TransUnion in India.

TransUnion has recently observed a trend when they compared the periods of March 11, 2019 – March 10, 2020, and March 11, 2020 – March 10, 2021. This comparative analysis brought out a very shocking yet very interesting insight. Results indicated a substantial rise in attempted digital fraud originating from India against logistics companies – the level more than trebled- And up 224%.  

As people are shifting to online buying, more so in pandemic, for placing orders, goods are having to be shipped. Fraudsters know this and are zeroing in on redirecting genuine orders or alternatively placing fraudulent orders with hacked consumer profiles to authentic customer addresses, and rerouting them once shipped.

TransUnion’s latest quarterly analysis arrived at such conclusions about these fraudulent attempts bases on intelligence from billions of transactions and more than 40,000 global websites and apps contained in its flagship identity proofing, risk-based authentication and fraud analytics solution suite, TransUnion Truvalidate.   

It found the percentage of suspected fraudulent digital transaction attempts against businesses originating from India increased 28.32 percent when comparing the following two periods: (March11, 2019 and March 10, 2020) and (March, 11 2020 and March, 10 2021)

“Logistics companies must exercise strict vigilance and carry out rigorous surveillance to curb such attempts in order to pre-empt such happenings, designed to cause losses. Only those businesses will stay on top which will leverage from fraud-prevention tools that offer high detection rates and frictionless customer experience,” Shrivastava added.

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