Experian: E-commerce fraud attack rate up 15% over 2015
- Data from global information services company Experian shows that e-commerce fraud attack rates this year appear to be at least 15% higher than in 2015, growth suggesting that stolen cards, card numbers or identities may be getting used in incidents of "card not present" fraud.
- Experian also determined the riskiest ZIP Codes in the nation where fraud potentially could occur, and found Florida to be the top-ranked state for billing fraud, followed by New York and California. The three states have major ports-of-entry and airports that make it convenient for fraudsters to re-ship their stolen goods elsewhere.
- Among individual cities, Houston, TX had the riskiest ZIP Code for billing fraud, and Eudora, KS was second, with Miami third.
We have had the credit card companies tells us that EMV chip card technology is starting to make a difference in counterfeit fraud occurring at the point of sale. This may be true, but Experian's findings are a reminder that EMV doesn't mean the end of all fraud, and that criminals may only be redoubling their efforts to find other ways to make fraudulent purchases.
Other recently released data from Forter told a similar story, suggesting that e-commerce fraud increased about 27% from the fourth quarter of last year to the first quarter of this year, timing which coincides with EMV chip cards and terminals coming into broader usage in brick-and-mortar stores.
Furthermore, the Federal Trade Commission stated earlier this year that 2015 was a banner year for credit card fraud, with complaints up 41% last year over 2014. And as Experian points out, the increase in e-commerce fraud also comes as e-commerce sales continue to boom, growing 16% year over year in the U.S. during the second quarter of 2016. E-commerce has a bigger target on its back than ever.
"Fraudsters continue to exploit new vulnerabilities, and perpetrate card-not-present fraud against businesses using stolen consumer identity and payment data," Adam Fingersh, Experian general manager and senior vice president of fraud and identity solutions, said in a statement. "This reinforces the need for aggressive fraud prevention strategies and adoption of open technology platforms to prepare for the latest emerging cyber security threats. Fraudsters have what they need to quickly capitalize on compromised data, so businesses need to be prepared."