Report: Fraud Attempts on U.S. E-Commerce Merchants Rose Significantly Through 2015
Feb. 18, 2016
A new report examining the fraud affecting U.S. e-commerce merchants found fraud attacks rose from 0.8 percent of all transactions in Q1 2015 to 2.1 percent of all transactions in Q3 of that year. But, while fraud attempts are rising, the survey found the average amount per attack fell from $114 to $96 in the same time period, according to the Forter Global Fraud Index.
The index, which will take a quarterly look at fraud statistics in the U.S., broke down fraud by several merchant verticals and found fraud attempts on digital goods rose 254 percent from the first quarter to the third quarter last year. Fraud attacks on Websites selling luxury goods rose 108 percent. Electronics, on the other hand, enjoyed a 3 percent decrease in fraud attempts during the time period in question.
“The increase in fraud attempts and their sophistication highlight the need for retailers to ensure they are one step ahead of fraudsters,” said Bill Zielke, chief marketing officer for Tel Aviv-based Forter. “Legacy systems based on rules, scores and manual reviews won’t scale to meet the challenges faced by modern enterprise e-commerce.”