Online Retail Fraud Surge Pressures E‑commerce Sellers

Reports indicate a sharp rise in online retail fraud, with gift‑card scams and refund abuse becoming increasingly common. The Merchant Risk Council’s 2025 Global eCommerce Payments & Fraud Report found that 57 % of merchants saw a rise in refund and policy abuse over the past year, while 47 % identified refund abuse as the most frequent fraud type. Signifyd’s 2025 State of Fraud and Returns report also noted higher fraud‑related value and a significant increase in abusive returns.

The growing fraud pressure adds financial strain through chargebacks, higher operational costs, delayed legitimate orders, and extra staff time spent investigating suspicious activity. To mitigate risk, e‑commerce sellers are advised to regularly review fraud‑prevention rules, strengthen verification for high‑risk purchases, monitor return patterns, and integrate order, inventory, and returns systems for better visibility and early detection.