According to Bloomberg, if cybercrime were a country, it would rank as the world’s third-largest economy. Behind only the United States and China. And it’s growing. By 2027, global scams are projected to cost the world $23 trillion annually, with one in three people likely to fall victim. Already in the UK, a financial scam occurs once every fifteen seconds on average.
It is within this backdrop that Black Friday and Cyber Monday have become an increasing focus point for both retailers and scammers. Every year, the digital shopping frenzy grows bigger, faster, and more sophisticated. And so do the criminals who exploit it.
Black Fraud-day
Behind the flashing banners of ‘limited-time offers’ and ‘doorbuster deals’ a quieter threat lurks in the shadows of the checkout page: digital payment fraud.
As customers rush to click ‘buy now’ fraudsters blend into the chaos, exploiting high transaction volumes and confusing customers with highly sophisticated fraud techniques. What was once a celebration of online convenience has, for many businesses, become a test of their cybersecurity resilience.
This year, the true cost of Cyber Monday and Black Friday may not be measured in discounts, but in data breaches, chargebacks, and lost trust.
The Warning Signs
While many expect issues like stolen cards or hacked accounts, one of the most easily overlooked threats actually comes from genuine customers who know how to game the system.
Friendly fraud, often called chargeback fraud, is when a customer makes a legitimate purchase but later disputes the transaction to claim a refund. High-volume periods like Black Friday create the perfect cover for this, as retailers process thousands of orders at speed and struggle to keep track of every proof of delivery. Because it is hard to prove intent, merchants often lose both the product and the refunded payment.
Another issue that rises sharply during major sales events is card-not-present (CNP) fraud, where stolen card details are used to make online purchases. With such a large jump in transactions during Black Friday and Cyber Monday, fraudulent activity becomes harder to identify because it blends into the surge of genuine spending. Without a physical card involved, it is easier for fraudsters to bypass standard security checks, especially if retailers remove friction to create a faster checkout experience.
Retailers also need to look out for account takeover (ATO) fraud, which has been increasing as more people shop through accounts and apps. Criminals use stolen login details to access customer profiles, change passwords, redeem loyalty points or use stored card information to make purchases. Beyond the financial loss, ATO attacks can seriously erode customer trust. Which is even harder to recover than the lost revenue.
How Retailers Can Protect Themselves Against Fraud
Protecting customers and safeguarding revenue does not have to come at the expense of a smooth shopping experience. The key is to strike the right balance between security and convenience, especially when order volumes surge over Black Friday and Cyber Monday.
A good starting point is tightening defences around online payments. Simple measures can go a long way. Strong Customer Authentication and Address Verification Services can help spot suspicious activity early, without placing unnecessary friction on genuine shoppers. For higher value orders or anything that feels ‘off’, a quick email or phone check with the customer can prevent a costly chargeback later.
Strengthening account security is equally important. Criminals often rely on weak passwords or reused login details to break into customer accounts and make purchases with stored cards or loyalty points. Encouraging customers to use strong, unique passwords and offering multi-factor authentication can dramatically reduce the chances of an account takeover. Retailers can also set up alerts for unusual behaviour, such as repeated failed logins or access from unfamiliar locations, so genuine customers can be protected before damage is done.
Friendly fraud is harder to prevent because it often comes from legitimate customers rather than malicious actors. That makes clear communication your best defence. Transparent returns and refunds policies, visible during checkout and in order confirmations, help avoid confusion that later turns into a dispute. Keeping thorough records of fulfilment, including delivery tracking and proof of receipt, gives retailers the evidence they need to challenge any questionable chargeback claims. Small touches, such as using a clear and recognisable store name on bank statements, can also reduce “I don’t remember this transaction” disputes.
Ultimately, the most effective approach is ongoing, not seasonal. Setting up a simple chargeback management process helps retailers learn from disputes, identify patterns, and ultimately reduce risk.
Where Now?
As the Cyber Five weekend continues to redefine global retail, it’s also redefining the tactics of digital criminals.
The same tools that make online shopping faster and more convenient, saved payment methods, one-click checkout, loyalty programs, have become new frontiers for exploitation.
For merchants, staying ahead means more than offering the best deals; it means securing every step of the digital customer journey. By investing in layered security measures, promoting account vigilance, and maintaining transparent communication with customers, businesses can turn the tide against fraudsters.
The goal isn’t just to survive Cyber Monday and Black Friday, it’s to build the kind of trust that lasts long after the sales are over. Because in the evolving world of e-commerce, security isn’t a seasonal strategy – it’s a year-round commitment.
Find out more at paystrax.com
- Cybersecurity in FinTech
- Digital Payments