Payment Fraud: German Retailers' Losses Amount to Over €23 Billion

A recent report by Adyen highlights a concerning trend in the retail industry. In 2023, nearly half (45%) of retailers worldwide experienced cyberattacks or data breaches. This escalating threat is reflected in Germany, where retailers lost an average of €2.36 million in the past year due to fraudulent activities, such as payment fraud.

A global survey of over 38,000 consumers in 25 countries and 13,000 companies revealed the retail sector lost around €396 billion to payment fraud in 2023. On average, companies lost €2.75 million due to fraudulent attacks, with luxury fashion companies losing €3.67 million and health and cosmetics companies losing €3.64 million each.

The company survey as part of the report showed that companies in Germany that forecast sales growth of 100% or more for 2024 also suffered the highest losses from fraudulent attacks in the past twelve months (€10.61 billion). Consumers in Germany who fell victim to payment fraud in 2023 lost an average of €811 - an increase of 244% compared to last year’s survey, when it was around €235.

Many companies are actively considering how they can respond to the growing threat of fraud to protect themselves and their customers. More than half (54%) of the companies surveyed in Germany are considering switching to a payment provider that offers better fraud prevention systems.

Getir's Withdrawal Plans: Exiting Several Countries, Germany Included

The Turkish fast delivery service Getir is preparing to withdraw from several countries. Germany will be the first, with a closure date of May 15th, 2024. Withdrawals from Great Britain and the Netherlands are also planned. This decision was made by Getir's management in early April.

In Germany, layoffs for some of the 1,800 employees began this week. Warehouses will gradually close over the next three weeks. This means both the Getir and Gorillas brands will disappear from the German market (Getir acquired Gorillas in 2023).

Turkey remains the focus, as the Istanbul-based company's home market. Getir reportedly received new financing in the double-digit million range from existing investors, under the condition that the funds are used for the withdrawal and settlement of the three markets. Additionally, the food delivery business is expected to expand further in Turkey. Getir also discreetly exited the U.S. cities of Chicago and Boston last year. The fate of New York, their remaining U.S. location, is uncertain.

Italy Fines Amazon €10 Million for Alleged Unfair Commercial Practices

Italy's antitrust authority has fined two subsidiaries of Amazon a total of 10 million euros ($10.7 million) for alleged unfair commercial practices, the regulator said on Wednesday, a decision the U.S. e-commerce giant said it would appeal.

Amazon "significantly restricted consumers' freedom of choice" by automatically pre-setting a 'Subscribe and Save' option on its website for a wide selection of products, the watchdog said. In this way consumers were more likely to opt for regular scheduled deliveries rather than one-off purchases.

"The pre-ticking of recurring purchase induces one to periodically buy a product - even without the effective need - thus limiting one's freedom of choice," the authority said in a statement.

Amazon contested the decision and said it would appeal. "Every day customers benefit from the Subscribe and Save program by saving money and time on regular deliveries of items they routinely use", it said in an emailed statement.

The 'Subscribe and Save' option, which allows customers to schedule periodic deliveries of everyday essentials with an extra discount against the price of a single purchase, has allowed savings of more than 40 million euros ($43 million) since its launch in Italy, the company added.