The spread of Coronavirus (COVID-19) has completely changed the manner by which people in every country are able to live their lives. As individuals around the world begin to shelter in place in many locations, what does this mean for global commerce trends and how is fraud changing during this period? Each week, Forter will report on the latest e-commerce and consumer trends across a number of industries as well as point to some of the shifts in methods of fraud attacks that we are seeing.

*Data current as of March 22*

## FOOD, BEVERAGE, AND DELIVERY SERVICES

While many other industries are dealing with sudden dips in overall volume, businesses related to this category are instead witnessing a significant increase in volume and overall order value. The importance of food, beverage, and delivery services has never been more acute. As restrictions on outdoor excursions grow more stringent, people around the world are in need of a means by which to get food to their homes while limiting their interactions with other individuals. These categories have seen an overall increase in volume (including pickup of orders), an increase in specific goods (groceries), as well as a trend of larger than usual carts / or higher total cart value.

**150+%** Forter data indicates a large increase in overall traffic to businesses within this industry.

**150+%** Forter data shows that more and more clients are buying and stocking up on groceries via online grocery platforms.

**20+%** Due to people purchasing more per each time they shop, the average order value (AOV) is climbing.

## BEAUTY

As more and more people are being relegated to quarantine, the beauty industry has seen an uptick in consumer buying activity.

**Forter data indicates that beauty and skincare businesses are seeing between 50-100% increases in overall volume.**

As more people are home with time to fill, order volume in this industry is increasing. This may be attributed to the desire for individuals to advance their skincare and beauty routines, or try products that they may not have had ample time to test before.

## APPAREL AND ACCESSORIES

It is still early days as non-essential retailers are being forced to close their doors, so data in this category is still being accumulated. That being said, the immediate impacts of Coronavirus are being felt within this industry.

**Forter data indicates up to a 30% decrease in physical goods in some geographies for businesses related to the apparel and accessories industry.**

Forter data indicates an increase in certain types of physical goods within this category. For instance, shoes and footwear are becoming more popular items among consumers. Retailers holding sales during this period are seeing the power of these promotional periods in attracting buyers. Some apparel and accessories merchants are seeing nearly 3x the normal rate of transactions due to their promos during this time.

### Apparel and Accessories Fraud Trends to Watch

Within this category, merchants should be aware of:

- **Contactless Shipping and Delivery** as a potential avenue for fraud.
- Merchants in this category should also prepare for an increase in Buy Online Pickup In Store (BOPIS) as a potential segment to monitor for friendly fraud.
- **Promo Abuse:** Promo abuse occurs when legitimate customers or fraudsters create new/multiple accounts to receive one-time use promotional codes that they use multiple times.

## TRAVEL

In spite of the overall decline in travel that we’ve reported previously, we do see short-term regional spikes in activity. We have seen this associated with the impact of Coronavirus as it has spread to more countries, with travelers hurriedly leaving the countries before travel restrictions apply.

**200+% Spike in Regional Demand** – Forter data shows that massive spikes in regional activities have occurred as a result of the global pandemic.

**150% Increase in Last Minute Bookings** – In some instances, travel companies may equate last minute travel bookings or arrangements as tell-tale signs of fraudulent activity and block it.

**30% Increase in the Average Order Value (AOV)** – Forter data highlights an increase in legitimate customer spending per travel booking.

### Fraud Trends in Travel

- **Loyalty Fraud + Loyalty ATO:** Loyalty fraud has increased by 89% over the last year.
- **Refund Fraud:** Travel businesses should be cognizant of growing instances of refund fraud occurring during this period.
- **Friendly Fraud:** In cases of friendly fraud or abuse within the travel industry, it is likely that businesses will see more people filing either service chargebacks or fraud chargebacks because of their inability to travel.

## GROUND TRANSPORTATION

**Forter data indicates that there has been an approximate 80% decrease in overall ground transportation (trains, buses, ride sharing services).**

- **Trains:** Forter data indicates an approximate 80-90% decrease in rail transportation.
- **Buses:** Forter data indicates an approximate 90-95+% decrease in bus transportation.

### Ride Sharing Fraud Trends to Watch

- **Ride Credit:** Fraudsters will typically open their own accounts, procure stolen payment method details.
- **Personal Fraud:** Fraud in ride sharing is typically focused on leveraging stolen payment methods.

## EVENTS & TICKETING

Live events and ticketing businesses have been hit hard during this time. It is evident that a significant dip in overall volume of transactions has occurred.

The new global reality of Corona is having significant impacts on how people live their lives and how and where they choose to shop. The outbreak of the virus has underscored just how essential it is for merchants to ramp up their digital presence and transform the manner by which they do business.