Payments companies and retailers have a sobering forecast to ponder for online fraud. By 2023, global online fraud losses from e-commerce, airline ticketing, money transfer, and banking services will grow from $22 billion projected in 2018 to $48 billion, says Juniper Research in a new report.
Thanks to the proliferation of synthetic identities—when fragments of real identity information is used to create a new identity—and account takeovers, criminals are increasingly skirting anti-fraud measures retailers and payments companies use, Juniper says.
Originally posted on Digital Transactions by Kevin Woodward. Read the rest of the article here.
Originally posted by CardNotPresent.com.
New research from the Minneapolis Fed indicates that retailers are more concerned with fraud in their online channels than any other kind of fraud. Across nearly every size business, Fighting Fraud in the E-Commerce Channel: A Merchant Study found that not only was CNP fraud considered their greatest threat, but half worry about their systems’ abilities to handle fraud as the nature of data breaches changes and attacks at the online account level increase. More than three-quarters of those polled expect increased attacks on their e-commerce channels in the next 6 to 12 months.
Read the full article here.
One of NoFraud’s partners, iTristan Media Group, asked our Director of Business Development to talk about the fraud landscape and how that impacts merchants. The recording can be found here.
Original article was written by Jim Daly for DigitalTransactions.net
Merchants’ actual fraud costs are up for the third year in a row and their total fraud-related expenses also are rising, according to the latest True Cost of Fraud study from LexisNexis Risk Solutions.
Fraud as a percentage of the revenues reported by the 653 retailer risk-control executives surveyed for the 2017 study was 1.58%, up 7.5% from 1.47% in 2016. As recently as 2013, fraud was only 0.51% of revenues before increasing to 0.68% the following year and then taking a big jump to 1.32% in 2015. (more…)
Written by Liz Parks for STORES Magazine
When e-commerce merchants try to manage their own fraud protection, they can invest substantial time and effort striving to make the right transaction decisions on their own. As they do, they risk significant losses from fraudulent orders or through “false positives” that mistakenly flag legitimate orders. According to the 2016 LexisNexis True Cost of Fraud Study, and average $2.40 per transaction is lost to online fraud. Although high-volume online retailers can use very sophisticated and expensive fraud protection programs, that has not historically been the case for lower volume online merchants with more limited financial resources.
The ‘2016 American Express Digital Payments Security Survey’ reveals that 70% of merchants in the U.S. have seen sales conducted via digital channels rise in recent times.
However, the report reveals that sales could be much higher if it wasn’t for payment fraud. Overall, nearly half (48%) of online shoppers who have made a purchase online in the past twelve months – or about 80 million consumers – have experienced payment fraud. (more…)
Original post from cardnotpresent.com
Nearly a year after the EMV liability shift in the U.S.—a move specifically engineered to incent retailers to install EMV-compliant POS systems in their stores—only 44 percent of merchants are equipped with the new terminals, according to a new report from The Strawhecker Group. Further, not all of those merchants that have installed EMV-enabled systems are using them. Only 29 percent of U.S. merchants can actually accept chip cards, the report said, with terminal certification delays the main culprit.
Despite fewer U.S. merchants accepting chip transactions a year into the transition to EMV than predicted, however, the effects experts predicted have largely come true. Studies over the past few months have consistently shown that counterfeit fraud at the physical point of sale is dropping, while card-not-present fraud is surging. (more…)
This post is from X-Payments blog announcing our new partnership. Written by Anna Shvetsova.
We are pleased to announce the release of X-Payments 3.0.2. This time, we’ve added only one but very important and in-demand feature — NoFraud. As you’ve definitely guessed, this is the tool to help you fight fraud more effectively and easily.
Why Think of Fraud Prevention?
According to LexisNexis True Cost of Fraud study 2016, fraud cost retailers 32 Billion in the U.S. alone! Fraud attempts are up to 33% this year with 46% getting through existing fraud prevention tools. With EMV Chip technology adoption in the U.S., ecommerce fraud is expected to soar as it did in the UK (50%) & Australia (79%) On the other hand, 1.5% of legitimate transactions rejected due to overzealous fraud prevention. (more…)
Customers want a secure, fast, uninterrupted online shopping experience (thanks Amazon!). Merchants want to accept as many sales they receive yet are apprehensive about fraud. This fear motivates them to place a large percentage of order on hold for manual review.
Many ecommerce businesses have in-house solutions that monitor each transaction with the tools purchased from third party vendors. With these solutions, each order is given a score based on the data received. (more…)
