Back-to-school season often signals the return of jam-packed schedules for many consumers. As the holiday season approaches, those calendars only get busier.

One task that time-strapped shoppers are more than happy to delegate? The weekly (or even daily) grocery run. With convenient delivery and pickup options now widely available, there’s no need to roam the aisles or wait in long checkout lines when everything can be ordered with just a few taps on a smartphone.

Since the pandemic made online grocery shopping indispensable, consumers have fully embraced the convenience. In fact, U.S. online grocery sales hit a record-breaking $10 billion in July. With most forecasts predicting continued growth, the race to capture a slice of this booming market is more competitive than ever.

The dark side of digital convenience

To compete with the top bananas in the digital grocery space, new players need to deliver fast, seamless experiences, competitive pricing, and a wide assortment of goods. But here’s the catch: that winning formula can also open the door to fraud and policy abuse. Consider these challenges:

  • Speed invites exploitation: The faster your delivery, the more opportunities fraudsters have to exploit system vulnerabilities.
  • High-value items, high-risk stakes: Expanding your product lines to include big-ticket items (Xbox with your eggs, anyone?) makes your business a magnet for fraud.
  • Loyalty programs under siege: Fraudsters love hijacking accounts to resell loyalty points, turning your customer rewards into their personal payday.
  • Promotions attract abusers: Discounts and deals bring in new customers—but also new fraudsters looking to game the system.
  • False declines drive customers away: One mistaken rejection can send a loyal delivery customer straight to your competitor, potentially for good.

Welcome to the wild world of ecommerce. The good news? Grocers can take proactive steps to minimize risk while maximizing the revenue potential of this booming digital channel.

Want to tip the scale?

To level up your understanding of the biggest threats and best countermeasures, read the latest Risk Rundown from Riskified. Inside you’ll find:

  • How grocers can leverage past transactions from other merchants to evaluate the risk of each order (and how to tap into a network that already knows 94% of your customers).
  • Which carts, categories, and transaction characteristics signal risk
  • Proven strategies to protect loyalty, reduce chargebacks, and keep shoppers coming back.
  • How to detect masking and distinguish genuine transactions from fraudulent ones.
  • Essential ways to protect against abuse and protect the generous policies that fuel customer loyalty and growth.
  • How to automate fraud detection to reduce manual reviews, cut down on support calls, and enhance your customer service.