Combating Porch Piracy and Fraud this Peak Season

Porch piracy is a major issue for brands and consumers, especially during peak season when package theft spikes. Packages are vanishing from doorsteps at alarming rates, and the holiday rush only increases this risk. Brands are left scrambling to secure deliveries, control rising costs, and protect the customer experience.

Consider these porch piracy statistics:

• Porch piracy resulted in over $9 billion in losses last year (Forbes)
• In 2023, 260 million packages were stolen (CNBC)
• Nearly 67% of Americans have experienced package theft (Forbes)
• Consumers say having packages lost or stolen is their top holiday shopping concern in 2024 (Veho)

Ecommerce fraud is rising fast, alongside porch piracy, creating a double threat for brands during peak season. Fraudsters have become more sophisticated, using tactics like stolen credit cards with legitimate shipping and billing addresses to bypass security. Once the purchase is made, they reroute the package, intercepting it before the actual customer can receive it.

Retail fraud is on the rise: 

• Global ecommerce fraud losses were projected to hit $48 billion in 2023 (Mastercard).
• North America accounts for over 42% of global ecommerce fraud due to widespread data breaches and stolen credit card information (Mastercard).
• Attempts at placing fraudulent orders increased 19% in the first half of 2024 compared to the previous year (Chain Store Age).

According to Chain Store Age, the growth of global ecommerce crime rings and use of generative AI are resulting in an "industrialization" of online fraud. Traditional methods alone can’t keep up with these threats. With customers expecting fast and secure deliveries, brands need smarter solutions. 

The Consumer Perspective on Porch Piracy and Fraud

According to research by Veho, almost half (46.4%) of consumers say they have had a package lost or never received in the last two years (Veho). With over 55% of victims reporting that theft took place on their porch/ front door (ValuePenguin), consumers are also taking steps to prevent package theft.

Consumers say the most common precaution they take is using tracking notifications, which 35% utilize when offered by the delivery carrier (ValuePenguin).

Additionally, 21% of consumers reported changing their delivery time to coincide with when they are home, if this option is available from the carrier (ValuePenguin).

While package insurance is becoming more widely available through delivery services and stores, only 12% of consumers opted to use this form of protection (ValuePenguin).

Technology at the forefront of theft prevention: Perfect Placement

To address the increasing issue of package theft, many delivery carriers now offer photo proof of delivery to the end customer. Veho was one of the first technology platforms to introduce photo proof of delivery via our Perfect Placement Feature, implementing it well before it became a standard industry practice.

The Perfect Placement Photo feature allows consumers to gain more control over the delivery of their packages by offering a simple yet effective solution:

• Customers photograph their preferred spot: Consumers can take a photo of their desired delivery location, whether it’s a safe spot on the front porch, a well shaded spot outside of the sun’s reach, or any other accessible area that ensures the package's safety. Consumers can add this directly in the mobile app, or by texting their preferred placement with Veho’s Support team.
• Share with Driver Partners via the Veho app: The photo, along with any additional delivery instructions, is shared with the  driver partner through the Veho driver app. This eliminates guesswork and ensures driver partners know exactly where to leave the package.
• Exact location is recorded: For all photos supplied by customers, whether added directly in the mobile app or provided via text with a Veho Support member, Veho extracts the geolocation (latitude & longitude) of the photo.
• Real-time updates and confirmations: Once the package is placed in the specified location, customers receive a confirmation, complete with a photo of the placed package, ensuring peace of mind.

In addition to the Perfect Placement photo feature, Veho has also introduced the "Perfect Placement Geo Pin" feature. This ensures that packages are securely placed exactly where the customer has specified, providing an extra layer of security against potential theft.

By offering both perfect placement photo proof of delivery and precise package placement via geo-located pin, Veho has taken proactive steps to grant customers control over their delivery experience and combat the growing problem of package theft.

Today, brands working with Veho get real-time delivery photos through API and webhooks, providing immediate verification of package location and whether delivery instructions were followed. While this brings transparency and accountability to shippers, we know it’s not enough on its own. That’s why Veho has built in additional layers of protection to prevent theft and ensure a secure delivery experience.

Veho’s proactive approach to preventing fraud

Here’s how Veho is doing things differently: we focus on stopping theft before it happens. 

Veho’s platform tackles multiple points of vulnerability, shutting down opportunities for theft at every stage:

• Ability to Turn off Reroutes For High Value Items: Rerouting packages to alternate addresses is a common tactic used in ecommerce fraud. According to Chain Store Age, 13% of online orders include signs of address manipulation, a tactic that attempts to evade machine learning models’ ability to recognize addresses with a history of fraud. Veho helps shippers eliminate this risk by allowing retailers to turn off reroutes for high value items at their discretion, ensuring the delivery stays on its original path and preventing fraudsters from intercepting the package.
• Delivery monitoring: We closely monitor delivery activity to maintain reliability. If a driver partner is linked to irregularities (such as missing packages), we review the situation and take appropriate steps to resolve it.
• Real-time verification: With API and webhook integrations, brands can instantly verify deliveries in real time. This visibility ensures packages are delivered exactly where they should be, giving both customers and brands confidence in the delivery process.

The importance of building customer trust

In the world of e-commerce, every delivery is more than just a package - it's a promise to your customer. Porch piracy erodes customer trust, one of the biggest drivers of brand success. Late or stolen deliveries can sever that relationship, and once trust is broken, it’s hard to repair. 

Consider these stats from consumers: 

• 77% of consumers are less likely to shop with a brand again after a negative delivery experience.
• 65% will stop purchasing from a brand altogether based on a negative delivery experience.
• But 90% will repurchase after a positive one. 

That’s why Veho focuses on more than simply getting packages to their destination.

The Veho advantage this peak season

As porch piracy and theft unfortunately ramp up this peak season, brands need better than what traditional delivery carriers offer. Veho’s no-reroute options, driver tracking, and real-time photo verification offer protection far beyond the industry standard. Veho’s platform gives brands and their customers security, transparency, and peace of mind.

With the busiest shopping season upon us, the pressure is on. Fraudsters won’t slow down, but with Veho, brands can stay a step ahead. Our platform ensures every delivery is safe, accurate, and protected from theft—giving customers confidence and keeping brands in their customers’ good graces.