News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Holiday Fraud Attempts Jumped 31% in 2016

While global holiday online transactions grew 16 percent from 2015 to 2016, fraud attempts grew at nearly twice that rate, according to payments processor ACI Worldwide. The Naples, Fla.-based company said fraud attempts from Thanksgiving through New Year’s Eve grew 31 percent from last year and peaked on Christmas Eve, shipping cutoff day and express shipping cutoff day. This year, ACI found 1 out of every 97 transactions was a fraud attempt, compared to last year when a fraudster was behind 1 out of every 109 transactions. Also, the average ticket price of a transaction on which fraud was attempted decreased from last year ($243 in 2015 vs. $228 this year). In addition to shipment cutoff days, on which merchants obviously have less time to screen a transaction for fraud before they have to ship the item, ACI said “buy online/pick up in-store” purchases generated the most fraud attempts. “Over the 2016 holiday shopping season, merchants experienced significant growth in their digital channels, coupled with a substantial increase in fraud,” said Markus Rinderer, senior vice president of platform solutions for ACI Worldwide. “Given the consistent and alarming uptick in fraudulent activity on key dates, merchants must be proactive in their efforts to identify weak points and define short- and long-term strategies for improved security and enhanced customer experience.” For a more extensive look at holiday numbers click here.