Ecommerce fraud on holidays – heads-up for retailers

The 2016 Holiday Fraud Index uses data from hundreds of clients and billions of data elements to uncover EMV, cross-border, and digital gift card trends that could put retailers’ bottom lines at risk.

Since EMV’s launch, Radial has seen on average a 30% increase in online fraud attacks across its client base with the steepest increase occurring in the Electronics, Entertainment and Jewelry market segments.

Venezuela has the highest cross-border ecommerce attack rate at 17.04%, while the US Virgin Islands has one of the lowest at 0.06%, as well as the highest order approval rate at 99.77%. China, Japan, and Korea account for nearly 50% of cross-border ecommerce sales in the Cosmetics and Home market segments. Korea and China account for more than 78% of sales among the top five cross-border countries during the holiday season.

Data shows that retailers can be approving up to 98.59% of cross-border ecommerce orders on Cyber Monday – a sales figure that surpassed USD 3.8 million for Radial clients last year. Cross-border fraud attack rates dropped over 33% on Cyber Monday compared to the rest of the holiday season.

Credit card BIN and IP country matter when accessing risk. Colombia‘s BIN and IP address shows an attack rate of more than 20% for digital gift card purchases. When Mexico is the BIN country, digital gift card attack rates exceed 27%.

Radial has found that many retailers are still diagnosing too much cross-border fraud, and losing out on millions as a result.