U.S. Online Fraud Attempts Increase 22 Percent During 2017 Holiday Shopping Season
ACI’s benchmark survey data* is based on hundreds of millions of
eCommerce retail transactions from global merchants using ACI
ReD Shield—the eCommerce
fraud prevention component of ACI’s UP portfolio of payment
solutions—to detect and prevent CNP
fraud during the 2016 and 2017 holiday shopping seasons (beginning
Principal findings and key fraud activity trends include:
Thanksgiving Dayand December 31, 2017, the number of eCommerce transactions grew by 19 percent, compared to the same dates in 2016. Fraud attempts increased by 22 percent.
Fraud attempt rates were highest on
Thanksgiving Day(1.94 percent, up from 1.26 percent in 2016), Christmas Eve(1.78 percent, up from 1.48 percent) and December 21– the cutoff date for express shipments – (1.67 percent, up from 1.49 percent).
- The trends driving these peak fraudulent days include shipment cut-off, consumer traffic and buy online pick-up in-store transactions.
The average ticket price of attempted fraud transactions over the
entire holiday period in 2017 was
$227, a one percent increase from 2016 ($239). Reduced shipment prices, low-priced electronics and promotions are driving this trend.
The overall volume of purchases recorded in January-
October 2017increased by 14 percent, compared to the same period in 2016.
“Over the 2017 holiday shopping season, merchants experienced
significant growth in their digital channels, coupled with a substantial
increase in fraud,” said
During the 2017 holiday shopping season, the number of fraud attempts
based on total population increased compared to the same time in 2016:
- In 2017, 1 out of every 85 transactions was a fraudulent attempt
- In 2016, 1 out of every 97 transactions was a fraudulent attempt
- In 2015, 1 out of every 109 transactions was a fraudulent attempt
- Key shopping dates by volume:
ACI will showcase its flexible, vendor-agnostic omni-channel
merchant payments solutions 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:
The data is based on similar averages of
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 Shieldglobal 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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Dan Ring, 781-370-3600