--- title: How are fraudsters exploiting your electronics business? date: 2021-12-01T10:46:00+00:00 author: Lola Omo-Ikerodah canonical_url: "https://www.ravelin.com/blog/electronics-retail-industry-pulse-challenges-fraud-risks" section: Blog --- Blog /[Payments & payment fraud](/resources?search=&category%5B0%5D=189241#resourceContainer "Go to Payments & payment fraud"), [Refund abuse](/resources?search=&category%5B0%5D=204631#resourceContainer "Go to Refund abuse"), [Promo abuse](/resources?search=&category%5B0%5D=244453#resourceContainer "Go to Promo abuse") # How are fraudsters exploiting your electronics business? From supply chain challenges to changing consumer behavior, we delve into the biggest trends impacting the electronics industry. How is your business adapting to these shifts? ![How are fraudsters exploiting your electronics business?](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_blogSmall/130110/Electronic-feature-image.webp) The online sale of consumer electronics is accelerating. [Nearly half](https://www.roirevolution.com/blog/2021/11/coronavirus-and-ecommerce/) of 2020 sales happened online and the industry is projected to bring in over $79 million in ecommerce sales in 2022. This is a 7% increase from 2021. In such an attractive market for fraudsters, what does this rapid growth mean for fraud risks? Find out what online electronics merchants had to say... ## Account takeover is the biggest fraud risk A massive[ 72% of electronics retailers](https://pages.ravelin.com/retail-fraud-payments-report) say that account takeover is a top fraud risk. And [34% of merchants in this space](https://pages.ravelin.com/retail-fraud-payments-report) have seen an increase in this type of fraud. Customers often blame the merchant for having poor security, even when it’s not their fault. Brand reputation and customer retention often take a huge hit as a result. ## Market flooded with fakes [Around 10% of electronic products are counterfeit](https://www.cscglobal.com/cscglobal/pdfs/The-Cost-of%20Online-Counterfeiting-Consumer-Electronics-EN.pdf). In many cases, fake components find their way into the supply chain and are sold on by legitimate retailers. And online retail is making this even easier. How are you protecting both your customers and your brand? ## Global Chip Shortage Even huge brands like [Apple and Samsung](https://www.techradar.com/uk/news/the-chip-shortage-runs-deeper-than-you-think-heres-everything-you-need-to-know) have been impacted by the supply chain issues related to the chip shortage. The chip crisis has meant that [prices have shot up](https://www.wired.com/story/chip-shortage-electronics-prices-tvs-displays/) and will likely continue to do so. With demand outweighing supply, what does this mean for fraud in your business? ![](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/081-Infographics-ELECTRONICS.png) #### Equip your team with the tools they need to tackle fraud in 2022 If you'd like to hear more about how Ravelin can help your business, click below for details. [Learn more](https://www.ravelin.com/retail) #### Source list - [Industry definition](https://www.marketresearch.com/MarketLine-v3883/Electrical-Electronics-Retail-Global-Guide-11564058/) - [Consumer electronics predicted growth](https://www.globenewswire.com/news-release/2021/08/10/2277628/0/en/Global-consumer-electronics-and-appliances-market-is-expected-to-reach-upto-USD1344-50-billion-by-the-end-of-2026.html) - [Ecommerce share of electronic sales](https://www.businesswire.com/news/home/20211007005754/en/Global-Consumer-Electronics-E-Commerce-Market-Report-2021-with-Forecasts-to-2030-Featuring-Major-Players---Alibaba-Amazon-JD.com-eBay-Shopify-Rakuten-Walmart-Newegg-Target-Flipkart-Best-Buy---ResearchAndMarkets.com) - [Increasing price of electronics - TVs](https://www.gfk.com/press/global-consumer-electronics-market-on-the-up-or-showing-signs-of-saturation) - [Increasing price of electronics - Mobile phones](http://www.danielresearchgroup.com/) - [US stimulus package](https://www.zdnet.com/article/the-senate-just-agreed-52-billion-to-boost-us-chip-making-its-going-to-take-a-lot-more/) - [Apple losses as a result of the chip shortage](https://www.theverge.com/2021/10/28/22751418/apple-q4-2021-earnings-supply-constraints-chip-shortage) - [Struggle with counterfeit goods](https://www.cscglobal.com/cscglobal/pdfs/The-Cost-of%20Online-Counterfeiting-Consumer-Electronics-EN.pdf) - [Global cost of counterfeit goods](https://www.supplychainbrain.com/blogs/1-think-tank/post/33575-combatting-supply-chain-counterfeiting-with-technology) - [Account takeover losses](https://threatpost.com/account-takeover-fraud-online-retailers/159802/) ## Author ![Lola Omo-Ikerodah](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_avatarSmall/101467/lola.webp) Lola Omo-IkerodahContent Writer (Ravelin alumna) Lola has previously served as Content Writer at Ravelin. [More from this author](https://www.ravelin.com/author/lola-omo-ikerodah) ## Related content [Blog / Payments & payment fraud ### Card payment liability shift – everything you need to know to reduce chargeback burden The knowledge you need to make the most of liability shifts and reap the benefits for your company – including saving money on chargebacks. ![Freddie burgess](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/281707/freddie-burgess.webp)Freddie Burgess,Senior Product Support Analyst](https://www.ravelin.com/blog/card-payment-liability-shift-for-chargebacks) [Blog / Fraud analytics ### Refund abuse KPIs: How to measure and reduce refund fraud rates What you need to know to assess and quantify refund abuse – as well as to measure whether your refund abuse solution and strategy are delivering results. ![Can](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/280078/can.webp)Can Colak,Senior Product Manager](https://www.ravelin.com/blog/how-to-measure-refund-abuse-kpis) [Blog / Press release ### Driven by AI, customers now rival criminals for ecommerce fraud, say merchants Global ecommerce fraud enters a new phase as losses continue to climb. Merchants now view criminals and their own customers as presenting a comparable risk, and there's a gap in AI adoption. ![Ravelin Symbol Blue 1](https://storage.googleapis.com/ravelin-website-assets-production/assets/images/_33x33_crop_center-center_none_ns/187712/Ravelin-Symbol-Blue-1.webp)Ravelin Technology](https://www.ravelin.com/blog/ravelin-fraud-survey-2026-press-release)