According to a new report from Signifyd, an e-commerce fraud-prevention platform, jewellery is one of the most vulnerable sectors for online fraud.
The new report measures the frequency of scams involving stolen credit cards and online accounts. It suggests that the fraud rate has risen for the jewellery and metal sectors, while it has fallen for most other categories.
Signifyd also released its new Global Fraud Index, which found that the fraud rate for jewellery rose from 11.72 per cent to 13.27 per cent in the first quarter. Overall, online fraud came in at a rate of 3.59 per cent, down from 5.51 per cent a year earlier.
Sourabh Kothari, Signifyd’s director of merchant advocacy, says that this trend is a result of jewellery’s high value and “universal appeal”—jewellery has a great resale potential.
What’s more, he says, jewellery sites tend to rely on older fraud-fighting tools, like blacklisting, rather than those that use machine learning. As such, jewellers should invest in proper technologies—ones that look at consumer behaviour—to help combat fraud and loss.
Author: Canadian Jeweller Magazine Staff
Canadian Jeweller Magazine Staff is the shared byline for reporting filed by the magazine's editorial desk. Founded in 1879, Canadian Jeweller is the longest running jewellery business publication in Canada, covering market reporting, retail strategy, watches, diamonds, coloured gemstones and the commerce of the Canadian jewellery trade. Work published under this byline is edited and verified by the Canadian Jeweller editorial team in Toronto.
