There are two key reasons:
Fraudsters follow the money.
Auto parts are high-value merchandise.
Products can bridge multiple highly popular categories, including:
There are also many secondary marketplaces, middle markets, and aftermarkets:
Because criminals can quickly turn stolen items into easy cash, the auto parts industry is an enormously appealing target for CNP Fraud.
This may come as a surprise, since the size and quantity of auto parts can complicate resale logistics:
But fraudsters work in teams and selectively target certain types of auto parts.
Fraudsters can make money by selling either to middlemen or directly to the aftermarket.
Fraudsters look for in-demand products that are easy to resell. The most popular targets include:
than the average fraudulent order in general retail markets.
Fraud prevention is a numbers game. The most important key performance indicators (KPIs) to watch are your chargeback rates and decline rates.
If your domestic chargeback rate is more than 0.25% and/or your decline rate is more than 1.5%, you have a fraud problem.
Your chargeback rate (also called a chargeback ratio) is the number of chargebacks compared to your overall transactions for a given month.
More chargebacks = a higher chargeback rate.
Each card issuer calculates this ratio slightly differently.
Visa divides the current month’s number of chargebacks by the current month’s number of transactions. MasterCard divides the current month’s number of chargebacks by the previous month’s number of transactions.
Fraud prevention strategies must be aligned with businesses goals. For this to happen, you need a solution that enables you to manage performance, not complicated features.
For more than 15 years, ClearSale's comprehensive fraud solutions have delivered results that matter: the highest approval rates, lowest chargeback rates, and top-notch customer service in more than 150 countries.
Customers continually tell us how ClearSale makes their lives easier by increasing sales, controlling fraud, and improving their customer experiences.
If you believe you have opportunities to improve your business in any of these areas,
ClearSale might be your partner of choice.
Standard gasoline and hybrid engine automobiles are one of the most common modes of transportation worldwide, and with their use comes a lot of maintenance.
This makes automotive parts and accessories a steady industry, growing at the same rate as the overall retail industry.
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“ClearSale allows us to focus on running a business instead of fighting fraud. We were skeptical, but ClearSale has proved themselves time and time again. We couldn’t be happier with their performance.”
“We decided to integrate ClearSale and the impact of adding was almost immediate. The commission is worth it, as more sales are approved.”