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The Cross-Border Ecommerce Community (CBEC) enables Merchants, Payment Service Providers, ISOs and Acquiring Banks to access valuable content about mature and developing markets that can support strategic decision-making. Read more

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Ecommerce fraud and online fraud prevention in Turkey

Read below about payment fraud, online fraud and fraud prevention in Turkey

More information can be found in the Cross-border Ecommerce Report- Turkey

Turkey is a fast growing ecommerce market, with high card penetration rate and strong potential. The major source of payment fraud is card-not-present fraud and robust fraud prevention measures will be needed to ensure profitable business expansion in this market.

With 57 million credit cards in circulation, Turkey has a high card penetration rate (about 75% of the population) and there has been a rapid increase in card usage. However, a large number of transactions have involved the use of credit cards to withdraw cash. According to a report in the Hurriyet Daily, the rate of cash withdrawal has increased to the extent that TRY 15.1 billion were withdrawn in the first 5months of 2013, compared with 10.9 billion in the whole of 2008.

Turkey has been an early adopter of EMV technology and Euromonitor International figures show that the major portion of its fraud today is card-not-present fraud. Identity fraud has shown the greatest increase, albeit from a small base, and the sale of counterfeit products via ecommerce platforms is a significant issue.

Ecommerce growth in Turkey has been among the fastest worldwide and, according to yStats, a quarter of Turkish internet users now shop online. eMarketer reports that 70% of the internet population is aged below 35.

Mobile commerce has high growth potential in Turkey, with smartphone penetration rate of almost one-third on the total population in 2013 and increasing every year. In the 18-24 age group, smartphone penetration rate is over 50% and around a quarter of online shoppers use mobile devices to make purchases over the internet.

With CNP fraud up and ecommerce growing quickly, merchants doing business in Turkey will want to ensure that they have robust online fraud prevention measures in place. The rise in identity and account takeover fraud will require specific fraud mitigation tools and techniques.

As consumers increasingly adopt mobile payments, mobile fraud prevention is likely to require greater emphasis. Authentication and verification methods that have proved successful in combating online fraud can be considerably less effective against mobile fraud – perpetrated by fraudsters on the move – and merchants will need to adopt new fraud strategies for this growing sales channel. 

More information about ecommerce fraud, mobile fraud and online fraud prevention in Turkey can be found in the Cross-border Ecommerce Report - Turkey