All posts with the tag CNP Fraud
Fraudsters employ all sorts of tricks to deceive online retailers and get away with eCommerce fraud. In previous Halloween posts we shared best practices for deciphering between good and bad orders, as well as tips for unmasking fraudsters (while keeping false declines to a minimum).
This Halloween, we’ve decided to put our readers to the test! Take our quiz, based on data from real orders we’ve reviewed, to find out if you’re easily tricked, or could cut it as a fraud analyst!
Good luck…Read More
It’s no secret that millennials spend a lot of their money shopping, and unsurprisingly 67% of younger consumers prefer purchasing online. US college students alone have an estimated buying power of $523 billion, and with a lifetime of online shopping ahead of them, they are a highly lucrative eCommerce growth engine.
Yet many retailers fail to consider how their approach to fraud is preventing the maximization of profits from college-aged consumers. In this blog, I share some insights about their importance as a consumer demographic. Better understanding fraud patterns can assist merchants in nurturing these young customers and tapping into this safe revenue stream.
In 2016, the Middle Eastern eCommerce market was worth around $5 billion – a figure that’s expected to double by 2018. The region, as a whole, has tremendous potential. The digital share of retail in the Gulf states is a mere 1-2% of the total spent, compared to around 15% in more mature markets. To add allure, the average value of an online order placed in the Middle East is currently 50% higher than the rest of the world. The point is clear: The Middle East is a market that eCommerce retailers seeking to grow their business can no longer afford to ignore.
Many online merchants, however, continue to lose out on profits from this up-and-coming region due to their fear of Card-Not-Present (CNP) fraud. Some simply deny international credit cards. Others accept international cards, but fail to adapt their fraud review processes to account for cross-border transactions, resulting in high rates of false declines. Either way, retailers need to ensure they have the infrastructure, and are prepared to handle an increase in sales from this promising market.Read More
Global online retail sales are projected to exceed $2 trillion in 2017, and double to $4 trillion by 2020. Despite this rapid growth, selling online is not without its challenges, and eCommerce merchants are increasingly seeing their hard-earned revenue fall victim to CNP fraud and the associated chargebacks. A 2016 study confirmed this, with online merchants reporting that chargebacks accounted for much of their fraud-related revenue loss.Read More
It’s expected that by 2019 more than 60% of total global online retail sales will be made via mobile devices. According to the 2017 Global Fraud Survey, while more than 80% of merchants support mobile shopping, only 52% actually track fraud rates by channel. To make the most of this expanding segment and account for the growing share of mobile shoppers, online retailers will need to adapt CNP fraud management processes.
Riskified has extensive experience preventing CNP fraud across channels. We have processed millions of mobile orders for online businesses, including Fortune 500 companies. By analyzing our data, we determined how mobile fraud compares to desktop and compiled our findings in a special report. The report provides retailers with tips and actionable advice for adjusting fraud management process to effectively handle mobile transactions without compromising the shopping experience.
Our design team has created the following infographic, which offers a visual sample of some the insights covered. For more information on fraud prevention best practices, download a free copy of the full report.Read More
Mobile commerce (mCommerce) is quickly becoming the first choice of consumers across the globe, with over 2 billion smartphone and tablet users expected to make at least one mobile transaction in 2017. Thanks to its appeal to young shoppers, mobile has now surpassed desktop in terms of eCommerce transaction volume. And with consumers in emerging economies increasingly accessing the internet via mobile devices, mCommerce is likely to become the preferred digital shopping method of the future. According to forecasts, more than 60% of total global online retail sales will be made via mobile by 2019.Read More
Direct video surveillance of shoppers has long been the holy grail of fraud prevention, and today–after years in development–Riskified is thrilled to unveil the latest advent in fraud-prevention technology: ‘Cameo’. Cameo is a proprietary fraud detection technique powered by behavioral analysis of online shoppers, which can automatically determine the legitimacy of an order with extreme accuracy.
Early trials of Cameo have yielded exciting results, and we expect this surveillance data will allow us to dramatically improve our merchants’ approval rates while nearly eliminating CNP fraud.Read More
Last year, to mark International Women’s Day, we researched the role of gender in CNP fraud patterns, and found that males committed fraud at a significantly higher rate than females. This year we decided to revisit the topic, analyzing hundreds of thousands of eCommerce transactions from global digital retailers to reveal some interesting findings about gender in the online market.
Today’s college students are increasingly going online to spend their money, and retailers go to great lengths to attract this consumer segment. In fact, US college students have an estimated buying power of $545 billion, making them a very lucrative segment for online retailers to target. Many retailers offer deep student discounts and run high-profile ‘back to school’ campaigns in an attempt to capture some of the market.
However, many retailers fail to realize that fraud prevention measures are holding them back from maximizing online revenue from students. In this post we share key stats about the fraud patterns and online shopping behavior of US students, which we hope will allow merchants to capture more revenue from this consumer segment.Read More
In the weeks leading up to International Women’s Day, research groups and media outlets publish reports on women’s status in society and on the gender gap in countries across the world. As an eCommerce fraud prevention company, we figured Women’s Day is a good opportunity to assess the state of women in online fraud – are female consumers more or less likely to commit fraud? Are professional fraudsters mostly male or are they an egalitarian bunch?
To answer these questions, we analyzed hundreds of thousands of eCommerce purchases placed with retailers around the world – and we’ve laid out our findings in the following post.Read More