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More information can be found in the Cross-border Ecommerce Report - Brazil
Brazil has the highest card penetration in Latin America and its credit card fraud levels are among the highest in the world. As ecommerce and mobile commerce continue to expand, so tailored fraud prevention measures will play an increasingly important part in countering fraudsters and protecting genuine consumers.
While local payment schemes such as Boleto Bancário are very popular, cybercriminals have been very active in Brazil and in July 2014 it was reported that a significant fraud had been committed by hackers using malware that altered the recipient account number listed on Boleto to an account number owned by the thieves.
ID fraud is a growing issue in Brazil. The country also ranks among the world's top producers of spam, Trojan viruses and phishing, and among the countries most infected by malware. Online theft is reported to be seriously affecting Brazil’s growing online retail market.
Brazil is the largest ecommerce market in Latin America, and ranked tenth in the world for ecommerce sales. The country has over 51 million online shoppers and, while initially driven by a rapidly expanding middle class looking for more choice, online sales are now shifting to become more mass-market.
In July 2014, A.T. Kearney found 86% of internet shoppers in Brazil had purchased electronics during the previous three months. Fashion and apparel, books, home appliances, tickets, music and games and beauty products were also popular. These are shopping categories that contain many of the high risk items most frequently targeted by fraudsters - and most urgently in need of sophisticated fraud prevention support.
A 2014 report from Adyen indicated that the implementation of 3D Secure in Brazil has had a significant effect on conversion rates. This is a significant issue for merchants and one that is now being addressed through increased flexibility in the application of 3D Secure to online transactions. The combination of 3D Secure authentication with other fraud prevention techniques can offer a powerful and effective weapon against fraudsters while enabling genuine transactions.
Recent research by the Brazilian Internet Steering Committee found that 85% of those aged over 10 now own a mobile phone. While purchases made via smartphones and tablets represented just 9.7% of ecommerce transactions processed in Brazil in 2014, this figure is clearly likely to rise and it will be essential for merchants to develop tailored mobile fraud rules for this fast expanding sales channel.
More information about ecommerce fraud, mobile fraud and online fraud prevention in Brazil can be found in the Cross-border Ecommerce Report - Brazil
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