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Education

Don't make fraud this How fashion fraud works
winter's fashion trend
Consumers and retailers alike are
By Don Bush both targets of fraudsters, and the
Kount Inc. former have increasingly found
themselves victims of online scams.
F ashion retail has evolved. With the growth of mobile commerce; the This is especially true on social
recent shift to EMV (Europay, Mastercard and Visa) in the United media, where consumers are sold
States, which has brought more fraud to online and mobile trans- poor quality or fake goods by
actions; and events such as Amazon Prime Day driving surges in retailers who disappear when things
ecommerce activity throughout the year, retailers must make sure they are go wrong.
prioritizing both security and convenience for their customers. Read on to learn
how you can help fashion retailers in your portfolio be informed so they can Consumers are more trusting of
navigate these new horizons to increase their bottom lines while protecting links shared on social media by a
their businesses from fraud. friend or acquaintance, rather than
a total stranger. However, accounts
According to FashionUnited (https://fashionunited.com/global-fashion-industry- can easily be hacked, and people can
statistics), the U.S. fashion industry has a domestic market value of $385.7 billion fall for scams without realizing it.
and employs approximately 1.8 million people, making it a major economic Fashion fraud reaches its peak during
player. Big business means big brands and a big customer base, but the flipside periods such as Black Friday and
of attracting such a reputable and wealthy clientele is the attraction of fraudsters the sales season as consumers are
who seek to acquire a share of the profits through less-than-honest means. expecting bargains and eye-catching
discounts. This means they are less
likely to approach too-good-to-be-
true offers with skepticism, creating
fertile ground for fraudsters.

On the retailer side, merchants of
all sizes can fall victim, too. Fashion
merchandise is hot property for
criminals; it can have high value
and can be easy to resell on the
black market. Consumers may snag
what they think are designer goods
at bargain pricing without knowing
that they are dealing with criminals
selling illegal goods.

Fighting back

To combat this type of fraud,
consumers must be aware of the
various schemes out there. If
something looks too good to be true,
it almost always is. Designer goods
can't be bought for a few dollars,
no matter what holiday or sale may
be happening. And the fact that
an online friend has "endorsed" a
company touting these goods is no
sign that it is trustworthy.

There are key signs to look out for:
free shipping anywhere worldwide,
a discount on your first purchase, or
the head is cut off the model wearing
the product online (meaning that it
probably wasn't the retailer's photo

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