Report: CNP Merchants Beware of Fraud-Filled November

Nov. 3, 2014

Report: CNP Merchants Beware of Fraud-Filled November Heading into the holiday shopping season, Feedzai, an antifraud technology provider that uses machine learning to analyze payment transactions in real time, recently released some interesting statistics pertaining to card-not-present fraud culled from its merchant clients over the past year. By aggregating and analyzing 17.5 billion online transactions, the company identified November as the biggest month for CNP fraud. The 10 days on which the most fraudulent transactions were performed all came in November, although Black Friday was not one of them (that day was reserved, said the company, as the top card-present fraud day).

“As we approach the holiday season, we are bound to see more evidence in fraud, especially with CNP transactions, and it will likely be bigger this season than last,” said Nuno Sebastiao, CEO of Feedzai. “Fraudsters are also quickly shifting behaviors and targets as shoppers change behaviors. We expect that we will continue to see more cross-channel fraud this season as shoppers look to save time by ordering online and picking up in-store.”

Feedzai also found CNP fraudsters spend more money and spend it faster than thieves spending fraudulently through card-present channels ($900 per card in five days vs. $450 per card in seven days). Day of the week and time of day are also factors in card-not-present fraud. Most fraudsters using CNP channels to perpetrate fraud do so on Mondays and their favorite time is between 12 and 1 p.m. while card-present fraudsters prefer the early evening hours (4-5 p.m.) on Saturday.