Retailers Report 69% Increase in Phone Scams as Shoplifting Dips

Retailers are seeing a massive shift in how they are being targeted by criminals. While physical shoplifting cases are finally starting to decline thanks to better in-store security, digital and phone-based fraud are skyrocketing. According to the National Retail Federation, phone scams targeting retail locations jumped by 69% this past year. This is a critical warning for operators who offer consumer financing, as fraudsters are increasingly using sophisticated social engineering to exploit credit applications and payment systems. For your business, this means the threat has moved from the aisles to the back office and the point of sale. Scammers often pose as corporate office employees or technical support for your financing providers to gain access to merchant portals or sensitive customer data. Because the average loss per incident is rising, your staff needs to be as vigilant about verifying identities over the phone as they are about spotting shoplifters on the floor. If you offer BNPL or long-term financing, your store is a high-value target for identity theft and credit mule schemes. Protecting your financing margins now requires a focus on cybersecurity training and strict verification protocols for any 'corporate' requests involving financial systems.

Source: PYMNTS

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