According to new data from ACI Worldwide, 2015 saw a significant increase in card-not-present (CNP) fraud attempts; 1 out of 86 transactions was a fraudulent attempt vs 1 out of 114 transactions in 2014. This means fraud attempt rates by volume have increased by 30 percent compared to 2014 as consumers shop with more devices online. Fraud attempt rates by value have increased by 33%.
2015 has also revealed new paths to fraud, due to the increase in omni-channel shopping options. The data reveals that digital downloads have the highest attempted fraud rate at 9.55%, followed by online purchase with next day/overnight delivery at 6.57%. Fraud rate attempts for international online orders stood at 2.38%, and buy online/pickup in store 2.15%.
Buy online/pick up in-store attempted fraud rates are expected to increase by 28% this holiday season (partly as a result of EMV being deployed within the card-present environment). Some retailers do not require consumers to re-run cards when they pick up products in store, making this an attractive option for fraudsters.
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