Study: Holiday fraud on pace to increase 30% this year
From data breaches and identity theft to account takeovers and friendly fraud, hackers are ready to wreak havoc this holiday season.
Overall, merchants can expect a 30% increase in omnichannel fraudulent activity throughout the holiday shopping season compared to the same period last year, according to data from ACI Worldwide.
Fraudsters’ arsenals are growing. Identity theft (via data breaches), account takeover (including phishing attacks) and friendly fraud (chargebacks) continue to be the biggest challenges to consumers and merchants this holiday season.
Fraudsters target values are increasing as well. The attempted fraud average ticket value (ATV), or a merchant’s average size of individual sales by credit card, is expected to increase from $210 to $215. The ATV will go up because fraudsters are targeting pricier items.
When it comes to fraudulent shopping activity, electronics and home goods (vacuums, blenders, cookers) continue to be highly coveted by fraudsters. These cyber-criminals also like immediacy — so buy online and pick-up in store, and next-day shipment continue to be popular tactics used to gain their booty.
The 2016 trend of targeting lower ticket prices continues in 2017, due to alternative shipping methods (e.g. buy online/pick-up in-store), low-priced electronics and promotions. The 2017 ATV overall will be $130, down slightly from $133 in 2016.
Retailers are also warned to be on high alert on Cyber Monday, since it is expected to have the highest processing volumes of any day of the year. Specifically, it will have 17% more purchases than Black Friday, according to the data.
“Fraud is increasing at an alarming rate — due to a potent combination of data comprises, identity theft, account takeover and friendly fraud,” said Erika Dietrich, global director of payments risk, ACI Worldwide.
“Fraudsters continue to target electronics and home goods — and show preference for immediate purchases like buy online, pick-up in store and next-day delivery,” she added. “It is imperative that both consumers and merchants protect themselves during the holiday shopping season given this new landscape of persistent and systemic fraudulent activity.”
Overall, merchants can expect a 30% increase in omnichannel fraudulent activity throughout the holiday shopping season compared to the same period last year, according to data from ACI Worldwide.
Fraudsters’ arsenals are growing. Identity theft (via data breaches), account takeover (including phishing attacks) and friendly fraud (chargebacks) continue to be the biggest challenges to consumers and merchants this holiday season.
Fraudsters target values are increasing as well. The attempted fraud average ticket value (ATV), or a merchant’s average size of individual sales by credit card, is expected to increase from $210 to $215. The ATV will go up because fraudsters are targeting pricier items.
When it comes to fraudulent shopping activity, electronics and home goods (vacuums, blenders, cookers) continue to be highly coveted by fraudsters. These cyber-criminals also like immediacy — so buy online and pick-up in store, and next-day shipment continue to be popular tactics used to gain their booty.
The 2016 trend of targeting lower ticket prices continues in 2017, due to alternative shipping methods (e.g. buy online/pick-up in-store), low-priced electronics and promotions. The 2017 ATV overall will be $130, down slightly from $133 in 2016.
Retailers are also warned to be on high alert on Cyber Monday, since it is expected to have the highest processing volumes of any day of the year. Specifically, it will have 17% more purchases than Black Friday, according to the data.
“Fraud is increasing at an alarming rate — due to a potent combination of data comprises, identity theft, account takeover and friendly fraud,” said Erika Dietrich, global director of payments risk, ACI Worldwide.
“Fraudsters continue to target electronics and home goods — and show preference for immediate purchases like buy online, pick-up in store and next-day delivery,” she added. “It is imperative that both consumers and merchants protect themselves during the holiday shopping season given this new landscape of persistent and systemic fraudulent activity.”