Increase In Credit Card Fraud

Increase In Credit Card Fraud.

Just released data from Radial’s leading eCommerce Fraud Technology Lab adds another alarming statistic for retailers to contend with when delivering a seamless customer experience. To date in May 2017, data shows a 200-percent increase in credit card testing, a tactic used by fraudsters to test stolen credit card numbers with small incremental purchases before making large-dollar purchases on the card, compared to the same quarter in 2016. Fraud also is up 30 percent year over year, proving to already struggling retailers that this is just the beginning of online fraud in the post-EMV world.

Managing fraud continues to be a double-edged sword for retailers. Many either apply tools that over-reject orders, but in the process decrease their customer transaction approvals and loose valuable revenue in return. Or, retailers build their fraud teams in-house, which often lack the historical data and rules to catch subtle card testing tactics. Card testing leads to more eCommerce fraud as it’s easily identifiable when a retailer is allowing these types of fraudulent transactions through. “We know fraudsters won’t stop looking for opportunities to monetise their stolen data and will even automate this process once they have a card that appears to be working,” said Stefan Weitz, chief product and strategy officer at Radial. “This results in quick, large volume purchases that leave retailers vulnerable. When retailers miss card testing, they’re contributing to future card attacks. Fighting card testing is complicated, but can stop millions of unanticipated fraud attacks if tracked and managed efficiently.”

The fraud landscape is rapidly changing and presents pervasive and growing threats for eCommerce merchants. Radial’s Fraud Technology Lab and a team of data scientists use their robust fraud platform to uncover how trends in fraud can drive down retailers’ bottom lines and increase their risk. According to Radial’s analyses, since August 2016, the market segments of electronics, entertainment, jewelry, and sporting goods experienced the highest increases in online fraud during the 2016 peak season. Credit: Radial Media Contact.

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http://www.bbc.com/capital/story/20170711-credit-card-fraud-what-you-need-to-know