Global Fraud Attempts Increased by 31% During Holiday Shopping Season
The survey data*, based on hundreds of millions of transactions from global merchants during the 2015 and 2016 holiday shopping season (starting on
Principal findings include:
Thanksgivingto December 31, 2016compared to the same dates in 2015, the number of eCommerce transactions grew by 16 percent, while fraud attempts grew by 31 percent
- Fraud attempt rates were highest on
Christmas Eve(1.6 percent), Shipment Cutoff Day (1.5 percent) and Shipment Cutoff -- Express (1.7 percent). The trends driving these peak fraudulent days include shipment cut-off and buy online pick-up in-store
- Average ticket price of an attempted fraud transaction decreased by 7 percent (
$228in 2016, down from $243in 2015)
- Reduced shipment price, low-priced electronics and promotions are driving this trend
"Over the 2016 holiday shopping season, merchants experienced significant growth in their digital channels, coupled with a substantial increase in fraud," said
- Key shopping dates by volume -- year-over-year transaction volume growth:
- Cyber Monday: 15%
- Black Friday: 19%
- During the 2016 holiday shopping season, the number of fraud attempts based on total population increased compared to the same time in 2015
- In 2016, 1 out of every 97 transactions was a fraudulent attempt
- In 2015, 1 out of every 109 transactions was a fraudulent attempt
At the NRF Annual
ACI ReD Shield is a key component of the UP Merchant Payments and UP Payments Risk Management solutions. ACI's UP portfolio of solutions orchestrates all aspects of payments processing for any payment type, any channel, any currency and any network.
* Methodology and Demographics:
Total online spend calculated against Adobe market share figures.
The data is based on similar averages of ReD Shield customer data year over year.
- Volume is number of transactions, comparing the 2016 holiday season to the 2015 holiday season, like for like global retail customers
- Value is number of transactions, comparing the 2016 holiday season to the 2015 holiday season, like for like global retail customers
- Fraud Attempt Rate: a transaction associated to any one or more of the following:
- Transaction data confirmed as fraudulent as a result of a merchant verification
- Transaction data matched a record in ACI's ReD Shield global screening negative database -- chargebacks, credit card numbers being sold online in underground chat channels, or reported as fraud by an issuer
- Pattern matching a recent confirmed fraud behavior
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