Are you looking for anti-fraud software? It’s important to consider such web tools if you have an e-commerce company. Online scams/fraud are becoming more common so it’s important to protect your business from them.
How serious is the problem? From Q2 105 to Q1 2016 the fraud rate on “card-not-present” transactions skyrocketed 137% based on a report from the anti-fraud tech provider Foster. The company evaluated transactions on its network. Not only that, but fraud attacks rose 27% from Q4 2015 to Q1 2016.
The Year over Year (YoY) increase of the fraud rate has already been increasing. However, the company found that the fraud rate during Q4 2015 was actually much higher than usual. Transaction volume during Quarter 4 is always heavy due to the holiday shopping season. Thus, the fraud rates typically drop then increase again during Q1 since the number of transactions drops after the December holidays.
However, last year it didn’t happen and the bounce from January to March was also higher than projected. The reason for the changes was Europay, MasterCard, and Visa (EMV). 90% of the increase in online fraud in 2015 was based only on EMV. However, experts weren’t surprised. In fact, the situation happens in each market where EMV was used.
They explain that fraudsters are very attentive and creative. They were aware that EMV was on the way. Former monitors several websites on the “dark web.” That’s where fraudsters group and share info. It explained that many people joined the forums who used to counterfeit cards. However, they knew that it was becoming tougher to do that.
Foster explained that due to more people inquiring about how to commit online fraud it would result in more online attempts of cyber-crimes. However, there have been other major trends as well.
Almost 80% of fraud attacks during Q1 2016 were done by botnets. Scammers are turning more to automation in order to save both time and money.
Another big trend only makes up 4% of online fraud in the US. It’s the use of account takeover fraud that takes place outside the US and Europe. Merchants have been protecting payment card data better. That’s made it tougher for scammers to steal the info. So although retailers can still be victims of security breaches, username/password combinations are worth more.
It’s also important to note that several types of online fraud can be done. New figures released recently suggest that the cost of ad fraud to global brands will be $16.4 billion this year. Not only that but almost 20% of total digital ad expenses was wasted during last year.
“invalid traffic” involves bots instead of humans to view/click on website advertisements cost advertisers an estimated $12.5 billion during 2016. The news was reported by the company named Adloox.
Another report by the agency group The&Partnerships has estimated that the cost due to ad fraud will rise by nearly $4 billion this year. The company teamed up with Adloox to review 200 billion “bid requests” as well as ad “calls.”