E-Commerce Fraud Worsens
Attacks by fraudsters were up an incredible 163 percent in 2015 according to the newly released Global Fraud Attack Index - a collaboration between PYMNTS.com and Forter.
The quarterly index benchmarks the rate of fraud attempts on U.S. merchants' websites by the type of fraud, the geography and the merchant segments being attacked.
“As payment technologies have become more and more sophisticated over time, so too have the fraudsters who attempt to take advantage of those technologies,” said Karen Webster, CEO of PYMNTS.com. “We hope that the Index helps merchants understand how the threats are changing as these fraudsters try to keep one step ahead of the technologies designed to put them out of business.”
In the first edition of the Global Fraud Attack Index, PYMNTS.com and Forter examined the occurrence of e-commerce fraud in the merchant segments that fraudsters find most attractive: digital goods, luxury goods, food and beverage, clothing, electronics.
“At the same time the attacks on merchants have increased, we’ve seen fraud attempts as a percentage of revenue for online merchants grow 94 percent from 2014 to 2015,” said Michael Reitblat, CEO of Forter. “It’s obviously never been more important for retailers to understand fraudsters and to protect their businesses from these growing threats.”
Other important data points from the Global Fraud Attack Index are:
+The biggest driver of overall fraud is Botnet attacks on digital goods, which amount to 75 percent of all potential fraud losses in the segment
+ The luxury goods segment is one of the few categories that experienced a rise in the average transaction attack amount, rising by as much at 4 percent
+ While location manipulation represents less than 20 percent of all fraud attacks that originate outside of the U.S. or Europe, it represents more than a third of the potential cost of fraud.
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