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Table of Contents

Lead Story

Retail disruptors redefine commerce

Ann Train


Industry Update

News Briefs


Cashless and cashier-less: a revolution in the making?

Patti Murphy
ProScribes Inc.

The Green Sheet, CCSalesPro start new podcast series


Street SmartsSM:
Let's stir things up a bit

Steve Norell
US Merchant Services Inc.

Nourish sales and exfoliate fraud: Combatting beauty fraud

Don Bush
Kount Inc.

What does cryptocurrency mean for ISOs?

Jordan Olivas
RS Software Inc.

Your merchants are flying blind

Barry Davis

Company Profile

HPS Worldwide

New Products

Cloud-based EMV solution improves transaction speed, security

Cloud EMV
Clearent LLC

Prevent chargebacks with curated intelligence, automated alerts

Prevention Alerts
Chargeback Gurus Inc.


Silence is power


Letter from the editors

Readers Speak

Resource Guide


A Bigger Thing

The Green Sheet Online Edition

July 09, 2018  •  Issue 18:07:01

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Nourish sales and exfoliate fraud: Combatting beauty fraud

By Don Bush

When it comes to online fraud, many think high-ticket industries, such as electronics, are most affected by criminal activity. But don't underestimate the price of beauty: double digit growth in the online health and beauty market is attracting the attention of online criminals.

Driving this growth is the recent trend of natural products, which, according to Natural Products Insider, saw a 30 percent increase in sales on Amazon alone in 2016. BigCommerce reported that online sales for the booming cosmetics industry have been rising 17 percent year over year. And the cosmetics industry has experienced an influx of online-only and niche beauty brands that have surged in popularity on social media (thanks, Instagram!). This, combined with consumers' preference for the ease of purchasing their favorite makeup without leaving the house, has left the industry open to fraud.

Industry-specific challenges

Health and beauty businesses face many of the same challenges that other ecommerce operations do: friendly fraud, card-not-present (CNP) fraud, account takeover, and fraudulent account creation, among others. However, they also encounter challenges that are unique to the industry. Some industry-specific issues include:

High-impact fraud trends

While merchants in the health and beauty industries might not have prioritized fraud prevention in the past due to the lower cost of merchandise, it's important to realize the true costs involved in CNP fraud, which include the costs of everything from chargeback fees and fines to lost shipping expenses to wasted labor. Following are several fraud trends impacting this industry the most:

Don't let the threat of fraud slow your business down. You can help your merchant customers get the right precautions and fraud prevention systems in place, so they (and you) can capitalize on the increase in beauty business without letting fraud get in the way.

Don Bush joined Kount as Director of Marketing in October 2010 and became Vice President of Marketing in December 2012. Previously, he was Director of Marketing at CradlePoint, a leading manufacturer of wireless routing solutions in the mobile broadband industry. Don has worked in several management roles within the technology segment for over 20 years with both hardware/software manufacturers and as a partner in two top technology marketing agencies. He has led products launches and marketing programs for dozens of companies around the world such as Citi, HP, IBM, Kodak, Motorola and Weyerhaeuser, and he co-authored the seminar series, Common Launch Disasters and How to Avoid Them. Contact Don at or visit ,a href='' target="blank">

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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