Study: Covid-19 Drove Demand for Food Delivery, Increased Cases of Online Fraud

The study found that online fraud in the restaurant sector increased by 32% during the coronavirus lockdown

The coronavirus (Covid-19) crisis expedited the shift to online shopping and with it the frequency of digital fraud. According to a new study by Forter, which specializes in e-commerce fraud prevention, the volume of online food transactions from restaurants increased by 134%, and online orders from food chains jumped 225%.

 

The study found that during the lockdown period, there was a significant increase in the opening of new accounts and a boost in new user transactions. Before the crisis, between 7% and 5% of transactions were conducted by new users, while after the crisis the number of transactions by new users jumped to between 20% and 25%. Another trend is a 674% increase in transaction appeals. The rapid increase in demand meant that suppliers in some cases couldn’t meet delivery times, and had to cancel transactions and refund clients through credit companies.

 

A delivery person on a motorcycle. Photo: Shaul Golan

The study found that online fraud in the restaurant sector increased by 32%. According to Daniel Shakedi, a product manager at Forter's marketing department, it is still too early to know the full consequences of the coronavirus crisis since credit companies often take months to report a transaction as fraudulent. Behind the worrying statistic are several fraudulent methods and cyber threats including the hacking of user accounts, shipping fraud, or purchasing a restaurant gift card with a stolen credit card.