December 5, 2017
E-commerce merchants certainly are not ready to declare victory over fraud, but recent data points indicate the battle isn’t as one-sided as it may have seemed during the last few years. The most recent is an analysis by Portland, Ore.-based antifraud technology provider iovation that found a slight decrease in credit card fraud over the just-completed Thanksgiving weekend. From Black Friday (Nov. 24) through Cyber Monday (Nov. 27), card-not-present fraud using stolen credit card information dropped from 59 percent of total fraud identified by iovation last year to 42 percent this year, 29 percent less than last year.
“Online retailers who leverage device intelligence are making significant inroads when it comes to proactively preventing card-not-present fraud,” said Greg Pierson, CEO and co-founder of iovation. “This type of fraud not only cuts into their bottom line results, it can cause irreparable harm to their brand so this is a meaningful improvement.”
Even if card-not-present fraud is falling across the board—and a few data points amidst others that say fraud is still rising may not reflect reality—other kinds of fraud affecting e-commerce merchants remain troublesome. The company noted that “poor password hygiene” continues to result in “a steady rise” in identity theft and account takeover, both of which have been growing problems for retailers, banks, insurance companies and others whose customers establish online accounts with stored value or connected payment instruments.