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
More information can be found in the Cross-border Ecommerce Report - Colombia
According to the Colombian Banking Association, 2013 saw healthy growth in payment cards in Colombia - to 30.8 million, or 0.7 cards per inhabitant. This growth trend is expected to continue through 2018 and prepaid cards are also gaining popularity among consumers.
As in other countries, there is evidence in Colombia of a shift in fraud to online channels following EMV implementation. The Colombian Department of Informatics and Telecommunications stated that cybercrime increased by 40% in 2013 and that 70% of internet users have been victims of cybercrime. Card cloning also rose by 25% in the same year.
The increase in online fraud comes as Colombia is seeing rapid growth in ecommerce, up 41.3% in 2014 to reach USD 3.5 billion. In October 2014, a new law was enacted with the aim of increasing financial inclusion, making financial transactions, and particularly ecommerce transactions, available to more Colombian citizens.
The shift towards online fraud has led more companies – especially retailers and airlines - to take action to counter fraudsters, using fraud prevention tools and techniques. In addition, Incocredito, the regulatory agent for card fraud in Colombia, has taken steps to ensure PCI compliance and undertake background checks on companies accessing the payment system.
The growth across ecommerce and mobile commerce in Colombia is largely attributed to increased smartphone usage and improved internet accessibility – and criminals, too, are increasingly targeting mobile phones and tablets. Merchants will need to ensure they are well prepared to counter fraudsters with fraud rules tailored to meet the specific challenges of mobile fraud detection while ensuring a consistent, high quality experience for customers purchasing across multiple channels.
More information about payment fraud and fraud prevention in Colombia can be found in the downloadable file.
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