Safeguarding your ecommerce site this Black Friday: a complete guide to fraud prevention

As ecommerce becomes the cornerstone of global retail, the holiday shopping rush around events like Black Friday and Cyber Monday presents a massive opportunity for retailers. Unfortunately, it also creates a prime hunting ground for fraudsters. With online sales growing, the threat of sophisticated fraud is more significant than ever. For businesses to thrive, they must adopt robust security measures to protect their customers and their bottom line. This guide offers key insights and actionable strategies to help you safeguard your platform against the rising tide of ecommerce fraud.

The escalating threat of e-commerce fraud

A troubling increase in fraudulent activity has accompanied the growth of online shopping. A troubling increase in fraudulent activity has accompanied the growth of online shopping. Our Future of E-commerce report shows a 21% rise in fraud between our 2024 and 2025 fraud reports. This isn’t a minor issue; we found that 1 in every 20 verification attempts in 2024 was fraudulent.

The financial impact is substantial. For more than a third of U.S. consumers, online fraud resulted in financial loss. On the business side, 13% of fraud decision-makers reported that fraud cost their company up to 20% of its annual revenue. This “fraud tax” is an unsustainable burden that demands immediate attention.

During peak shopping periods like Black Friday, the risk multiplies. The sheer volume of transactions provides cover for malicious actors to execute various scams. Key fraud types to watch for include:

• Account Takeover Fraud: Criminals use stolen credentials from data breaches to access legitimate user accounts, making unauthorized purchases and changes.
• Refund and Return Fraud: Scammers exploit return policies by requesting refunds for items they never bought or by returning used or damaged goods. This type of policy abuse is the most common form of fraud experienced by nearly half of online merchants.
• Transaction and Chargeback Fraud: Using stolen credit card details, fraudsters make purchases, leading to significant financial losses and damaging chargeback ratios for merchants.

A particularly alarming trend for the ecommerce industry is the rise of authorized fraud. Our 2025 Fraud Report revealed that ecommerce platforms suffer from this type of scam at a rate 18 times higher than the global average. This occurs when a user is tricked into completing an identity verification session, often through social engineering, giving fraudsters access to their accounts.

AI: A double-edged sword in fraud prevention

Artificial intelligence is revolutionizing the fraud landscape, presenting both challenges and opportunities. On one side, the accessibility of AI-powered tools has fueled a rise in sophisticated attacks. Over 60% of fraud professionals report an increase in AI-driven fraud attempts targeting their platforms, as generative AI enables the creation of synthetic identities and deepfakes with alarming ease.

On the other side, AI and machine learning are proving to be formidable allies in the fight against fraud. Businesses are leveraging these technologies to stay ahead of evolving threats. Research shows that 64% of U.S. ecommerce companies already use AI/ML for fraud prevention, with another 20% planning adoption within the next year. These systems excel at:

• Detecting complex fraud patterns and anomalies.
• Accelerating the identification of sophisticated fraud attempts.
• Automating customer verification processes.
• Analyzing behavioral data to flag unusual activity.

Veriff’s approach exemplifies the power of AI in fraud prevention. By combining cutting-edge AI with human expertise, Veriff has developed a layered system called Enhanced Document Support. This framework integrates large language models, mathematical forensics, and legal intelligence to detect fraud at scale. Their strategy merges AI’s precision with human insight, creating a resilient defense against emerging threats.

In an era where fraudsters innovate rapidly, businesses must adopt a proactive, AI-driven approach to safeguard digital trust. As Veriff demonstrates, the fusion of technology and human intelligence is key to staying one step ahead.

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The IDV advantage: Meeting customer and regulatory demands

Identity Verification (IDV) is no longer just a best practice; it’s a customer expectation. A staggering 75% of consumers believe IDV is important when signing up for an online marketplace. Businesses that prioritize robust security not only protect themselves but also build customer trust and loyalty.

Forward-thinking ecommerce companies are already reaping the benefits. A vast majority (83%) have adopted IDV and biometrics, with 81% planning to increase their reliance on this technology. The results speak for themselves. For example, by integrating Veriff’s IDV solution, JTI Philippines saw a 223% increase in customer conversion rates by streamlining its age-verification process. Similarly, The Pro’s Closet (TPC), a marketplace for pre-owned bikes, enhanced its operational efficiency and reduced fraud risk by automating seller verification.

Beyond customer demand, regulatory requirements like the INFORM Consumers Act in the U.S. mandate that online marketplaces collect and verify information for high-volume sellers. Partnering with an IDV provider is the most effective way to ensure compliance while maintaining a seamless user experience.

Building your trust stack: A multi-layered strategy

Effective fraud prevention requires a multi-layered approach—a “trust stack” designed to build confidence at every stage of the customer journey.

• Identity Verification: This is the foundation. By verifying that users are who they claim to be, you establish a baseline of trust for all transactions. Veriff’s solution combines document verification and biometric analysis to confirm a user’s identity quickly and accurately.
• Robust security: Protect customer data with essentials like secure server connections, data encryption, and two-factor authentication.
• Transparency: Be clear about your policies, processes, and fees. Accountability inspires confidence and reassures users.
• Social proof: Online reviews and testimonials are powerful trust signals. Research shows that nearly 95% of shoppers read reviews before making a purchase.
• Consumer protection: Implement clear refund and return policies to protect customers when things go wrong.

Preparing for the future with Veriff

As fraud tactics evolve, Veriff continues to lead with proactive innovation. Our CrossLinks technology identifies fraud patterns across a global network—detecting reused credentials or AI-generated identities without sharing personal data. Combined with advanced liveness detection and document authenticity checks, Veriff’s platform helps businesses stay ahead of deepfakes, digital manipulation, and emerging identity threats.

A powerful example of this innovation in action is Veriff’s partnership with A1 SolarStore, a digital-first marketplace operating across the U.S., Caribbean, and Europe. Facing an uptick in chargeback and shipping-redirection fraud due to high-value orders, A1 SolarStore needed a solution that could be deployed quickly and scale globally. By integrating Veriff’s AI-driven identity verification system, the company achieved a 100% reduction in chargeback incidents, effectively eliminating fraud while improving the experience for legitimate customers through frictionless verification. The partnership demonstrates how advanced IDV and AI—when strategically implemented—can safeguard ecommerce platforms even during high-risk shopping periods like Black Friday and Cyber Monday.

The foundation of secure digital commerce is trust. By integrating AI, biometrics, and responsible verification systems like Veriff’s Age Estimation, businesses can protect their users, meet compliance requirements, and deliver seamless customer experiences built on safety and integrity.