Report: Fraudsters Getting into Holiday Spirit
It’s the most wonderful time of the year for fraudsters, who are expected to ramp up global online fraud attempts by 12 percent over the upcoming holiday season compared with last year, according to new data from ACI Worldwide. The U.S. will be a hotbed of the increased fraud—especially card not present (CNP) fraud, which is projected to surge by 43 percent because of the EMV migration making in-store fraud a tougher proposition for criminals.
The good news—if you can call it that—is that the average ticket value of a fraudulent transaction attempt is projected to drop to $219, from $239 last year, a decrease of 8 percent—due largely to lower overall ticket prices associated with alternative shipping methods and promotions. Fraudsters are expected to focus on cosmetics, cordless headphones, sneakers and other lower-priced items that can be easily resold on the black market or via auction Websites, ACI said.
“Fraud is increasing at a rate nearly equal to general retail growth globally—and is exponentially increasing in the U.S., due to a seismic shift from in-store to online activity,” said Mike Braatz, chief product officer, ACI. “And because fraudulent activity is now considered to be an everyday occurrence, consumers and merchants must take every precaution as we head into peak holiday shopping season.”
The expected peak fraud attempt day will be Christmas Eve, with nearly 2.5 percent fraud. Cyber Monday is expected to have the highest processing volumes of any day of the year, followed closely by Black Friday, according to ACI.
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