Digital goods refer to non-tangible products such as music and digital gift cards. This will also vary between media and software. Digital goods retailers will sell products that are downloadable for sale. Businesses selling such goods are more prone to fraud because hackers will be found on the same platform selling the similar products in which case the payment ends up being made to the hacker rather than the retail supplier. These businesses will experience even more related crime from the sale of digital gift cards.
In the event that fraud occurs in this type of business, these retailers are bound to lose in two ways:
First, in the event the credit card was stolen, the money will be sent back to the to the card owner.
Secondly, the fraudster who made the initial purchase will later sell out the product to a different individual who will redeem it for merchandise. This means that the retailer will also loose on stock as the initial payment was cancelled but at this point, they will have to supply the merchandise.