U.S. is the Global Fraud Hotspot, with Online Fraud Attempts Expected to Increase 43% During Peak Holiday Season Due to EMV Shift
Online fraud attempts expected to increase 12% globally, according to
Principal findings include:
Card Not Present (CNP) global online fraud attempt rates are expected
to increase 12 percent by volume over the same peak holiday period in
2015—with sales to increase by nearly the same rate (13 percent) in
- Fraud and new business growth are rising at the same rate globally
U.S.CNP fraud attempt rates are expected to increase by 43 percent by volume
U.S.adoption of EMV chip cards, which protects card data through encryption, fraud is shifting online as fraudsters are more effectively deterred from in-store fraud
- Following the
The 2015 trend of lower ticket prices will continue in 2016, due to
alternative shipping methods (e.g. buy online/pick-up in-store),
low-priced electronics and promotions
U.S., attempted fraud average ticket value (ATV), or a retailer's average size of individual sales by credit card, is expected to decline from $239to $219, an 8 percent decrease
- Fraudsters are expected to focus on cosmetics, cordless headphones, sneakers and other lower-priced items (including ‘Gift with Purchase' products) that can be easily resold on the black market or via auction websites
- In the
"Fraud is increasing at a rate nearly equal to general retail growth
globally—and is exponentially increasing in the
Attempted online fraud rate by region
Africa: 4.3 percent, Europe: 3.6 percent, Asia: 3.6 percent, South America: 2.3 percent; North America: 1.6 percent
The expected peak fraud attempt day will be
Christmas Eve, with nearly 2.5 percent fraud, due to the popularity of gift cards and last-minute shopping via buy online-pick up in-store
- Cyber Monday is now expected to have the highest processing volumes of any day of the year—followed closely by Black Friday
"Merchants need to understand their peak days and the sales that drive those high velocity times to ensure risk strategies are effective and efficient," continued Braatz. "It's important to prioritize real-time fraud detection without alienating the consumer experience."
A key component of the UP Merchant Payments and UP Payments Risk Management solutions, ACI ReD Shield is a premier CNP fraud detection and prevention solution for eCommerce merchants. ACI's UP portfolio of solutions orchestrates all aspects of payments processing for any payment type, any channel, any currency and any network. ACI recently bolstered its cross-border eCommerce payment and CNP capabilities with the acquisition of PAY.ON, a leader in eCommerce payment gateway services.
* Methodology and Demographics:
ReD Shield Retailers (125), representing hundreds of millions of transactions from retailers globally, which have been utilizing ACI's service for two years.
- Volume is number of transactions, comparing last year to this year, like for like global retail customers
- Value is number of transactions, comparing last year to this year, like for like global retail customers
Fraud Attempt Rate: a transaction associated to any one or more of the
- Transaction data point confirmed fraud as a result of a merchant verifying
- Transaction data point matched a record in our 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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