Scared of CNP Fraud? Steer Clear of El Monte: Report

U.S. merchants on the lookout for card-not-present fraud should be most suspicious of orders with billing and shipping addresses in Delaware, Oregon and Florida, according to an analysis by Experian. The global data analytics firm examined millions of e-commerce transactions in 2016 and broke down the results by city and by state. The billing address on a fraudulent order is often part of an identity stolen from a fraud victim and the shipping address often represents the location of the fraudster.

The states whose residents are most at risk of having their identities or payment card information used fraudulently are Delaware, Oregon, Florida, New York and Nevada. The five places where fraudulent orders are most likely to be shipped are Delaware, Oregon, Florida, Alaska and Washington, D.C. Experian identified South El Monte, Calif. as the city with the highest billing and shipping fraud attack rates. More than 1 percent of all orders with that city as the billing address are fraudulent, while .64 percent of all orders shipped to that location are fraudulent, according to the analysis.

All regions of the country saw an increase in both shipping and billing fraud from 2015 to 2016 and, Experian theorized, the ongoing EMV migration in the U.S. paired with a wealth of available stolen personal and payment information is the likely culprit.

“One of the major drivers for the increase in fraud attacks is the continued adoption of EMV terminals for chip-and-pin credit cards,” said Adam Fingersh, general manager and senior vice president of Fraud and Identity Solutions for Experian. “While these cards reduced counterfeit credit card fraud at the point-of-sale, they have driven fraudsters online. This pattern is similar to what other EMV markets saw when transitioning to chip-and-pin cards. As more compromised data becomes available from breaches, it’s easier for fraudsters to get their hands on identity data requiring consumers and businesses to stay diligent in protecting themselves.”


Learn more about this topic at these CNP Expo Education Sessions in Orlando, FL from May 22-25, 2017.

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