Christmas Eve 2017: Not A Fraudster Was Sleeping
We made it through another Christmas season. There is probably no time of the year that eCommerce takes such a prevalent place in society. As we got closer to Christmas Day, eCommerce was ramped up to its highest volume with last minute rush orders being handled as fast and furious as merchants can process them.
But, it’s not over yet. In the week following Christmas, $700 million dollars a day will be transacted with online sales. Some of the biggest purchases will come in the form of party goods for New Year’s Eve parties, travel, lodging and of course, champagne. You can also expect that gift baskets and wine baskets will be big sellers as well.
While many purchases will be from the nice camp, the naughty camp will be busy at work too. They will be busy committing fraud against unsuspecting merchants who are eager to soak up the sales of the season. Looking back at this season, here are some stats for how much fraud was committed this season.
- Fraud attacks using a desktop computer increased at a rate 2x greater than sales growth.
- 334% increase in mobile app fraud attacks, at rate that is nearly 20% faster rate than sales growth.
- 13% increase in fraud committed using a mobile browser
- 36% increase in attacks using a desktop computer. This is a rate that is 3x greater than the sales growth.
- 301% increase in attacks using a mobile app. That is 37% higher than the sales growth.
- 27% increase in mobile browser attacks.
- 194% increase in fraud attacks using a mobile app.
With all that fraud activity, Chosen Payments recommends the following precautions to minimize the risk of becoming a victim of fraud.
- Analyze your data to determine normal behavior.
- Strategize abnormal buying patterns for the holidays.
- Determine your KPI benchmarks.
- Update your fraud rules and thresholds for risky orders.
- Place multiple layers of technology in the way of fraudsters.
- Train fraud analysts on holiday trends and train on a consistent basis.
- Review, analyze, and update as needed.
- Partner with your credit card processor, such as Chosen Payments who can assist you in identifying vulnerable conditions of processing payments online and processing orders for shipment or service delivery.
For assistance, please call us at 855-4CHOSEN.
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