Study: E-commerce fraud loss nears $60 billion
As cyber-thieves continue to make unauthorized transactions online, digital retailers’ losses have hit $3.3 billion dollars.
This was according to the “October 2017 Global Fraud Index,” from Pymnts and Signifyd. The index analyzes fraud attempts on e-commerce merchant websites. The industries examined in the study include: alcohol, tobacco and cannabis; apparel; consumer electronics; cosmetics and perfumes; department stores; furniture, appliances and home improvement; health, leisure and hobbies; jewelry and precious metals.
According to the study, the value of potential fraud across the eight industries examined in the index was $57.8 billion. This was a 5.5% increase in total fraud from Q2 2016 to Q2 2017. Online retailers specifically, faced a loss of $3.3 billion.
Across the board, the fraud rate for transactions valued over $500 was over 22 times higher than for transactions valued under $100. Fraud rates for transactions exceeding $500 increased from 10.93% to 11.47%, while transactions under $500 showed an overall decrease in fraud rate.
The most-targeted segment was cosmetics and perfume, which experienced a 171.9% increase in the rate of fraud.
Meanwhile, account takeover — fraudsters gaining access to a victim's bank or credit card accounts — has replaced stolen financials as the fastest growing fraud threat for e-commerce websites in 2017. In fact, this crime rose by an alarming 45% for the quarter.
This was according to the “October 2017 Global Fraud Index,” from Pymnts and Signifyd. The index analyzes fraud attempts on e-commerce merchant websites. The industries examined in the study include: alcohol, tobacco and cannabis; apparel; consumer electronics; cosmetics and perfumes; department stores; furniture, appliances and home improvement; health, leisure and hobbies; jewelry and precious metals.
According to the study, the value of potential fraud across the eight industries examined in the index was $57.8 billion. This was a 5.5% increase in total fraud from Q2 2016 to Q2 2017. Online retailers specifically, faced a loss of $3.3 billion.
Across the board, the fraud rate for transactions valued over $500 was over 22 times higher than for transactions valued under $100. Fraud rates for transactions exceeding $500 increased from 10.93% to 11.47%, while transactions under $500 showed an overall decrease in fraud rate.
The most-targeted segment was cosmetics and perfume, which experienced a 171.9% increase in the rate of fraud.
Meanwhile, account takeover — fraudsters gaining access to a victim's bank or credit card accounts — has replaced stolen financials as the fastest growing fraud threat for e-commerce websites in 2017. In fact, this crime rose by an alarming 45% for the quarter.