Holiday shopping in the U.S. officially kicks off on Thursday and retailers around the world can expect a significant bump in card-not-present fraud, led by a huge surge in the U.S. According to data from ACI Worldwide, CNP fraud attempt rates globally by volume will rise 12 percent compared to last year, driven by a 43 percent increase in the U.S. Retail customers of the Naples, Fla.-based payments processor said the ongoing migration of U.S. POS terminals to the EMV standard has resulted in a sharp increase in CNP fraud that will carry through the end of the year.
“Fraud is increasing at a rate nearly equal to general retail growth globally—and is exponentially increasing in the U.S., due to a seismic shift from in-store to online activity,” said Mike Braatz, chief product officer of ACI Worldwide. “And because fraudulent activity is now considered to be an everyday occurrence, consumers and merchants must take every precaution as we head into peak holiday shopping season.”
The single day with the highest fraud attempt rate in the U.S. will be Dec. 24, when 2.5 percent of all orders will be fraudulent, the report said. One reason Christmas Eve will see the highest fraud attempt rates of the season is it features, along with Christmas Day, the lowest amount of overall transactions, according to ACI. While legitimate shoppers are taking those days off, criminals apparently are not. ACI predicts Cyber Monday, the highest volume online shopping day of the season, will have the lowest rate of fraud attacks.