Online retail credit card fraud spikes over busy weekend
Results of research published by iovation, a provider of device intelligence for authentication and fraud prevention, show online retail credit card fraud jumps by 20 percent over the post-Thanksgiving shopping weekend, while more than half of all online transactions were enacted from mobile devices.
Fraud where credit cards are not present increased for the period encompassing Black Friday through Cyber Monday rose 20 percent from 2015 and 34 percent from 2014, the reason being new EMV cards, which are great at reducing card-present fraud but leave opportunity for the fraud to shift to another medium.
Other key findings include:
The percent of all online retail fraudulent transactions from Black Friday to Cyber Monday that involved credit card fraud
○ 2016: 59 percent
○ 2015: 49 percent
○ 2014: 44 percent
The percent of all online retail fraudulent transactions in 2014, 2015 and 2016 that involved credit card fraud
○ 2016: 59 percent
○ 2015: 42 percent
○ 2014: 50 percent
The percent of online retail transactions from Black Friday to Cyber Mondaythat were fraudulent
○ 2016: 0.38 percent
○ 2015: 1.16 percent
○ 2014: 2.34 percent
The percent of online retail transactions in 2014, 2015 and 2016that were fraudulent
○ 2016: 1.13 percent
○ 2015: 2.89 percent
○ 2014: 2.53 percent
Mobile and tablet use percentage topped out at 59 percent on Saturday and Sunday but plateaued at 48 percent on Cyber Monday.
While the percentage of online transactions being conducted on mobile phones and tablets rose to 49 percent throughout 2016, it spiked to 55 percent during the busy shopping weekend. In 2013, 20 percent of online purchases throughout the year and 31 percent on the shopping weekend were made from mobile phones and tablets.
Usage rates suggest shoppers are combining methods, Aite Group research director Julie Conroy said.
“The mobile drop-off on Cyber Monday highlights the extent to which show rooming among consumers is increasingly popular. More and more consumers are combining m-commerce with their brick and mortar shopping trips in an effort to get the best price. On Cyber Monday, once consumers are back at work, buying patterns revert to the computer, whose larger size still provides a more user-friendly shopping experience.”
iovation gleaned the data from its analysis of tens of millions of transactions it authenticates on the Thanksgiving weekend and the billions it processes throughout the year.
Like this article? Take a second to support us on Patreon!