E-Commerce Fraud Increases 33%

By Experian, Special for  USDR

Understanding where fraud takes place matters so businesses and consumers can be diligent in protecting themselves. Fraudsters continue to migrate their activities online as more merchants switch to EMV terminals and consumers receive chip-and-pin credit cards. Experian® analyzed this trend in a new report, the 2016 E-commerce Fraud Attack Rates rankings, that analyzes millions of e-commerce transactions and ranked the top states, cities and ZIP™ codes for shipping and billing fraud across the United  States.

View our interactive e-commerce fraud map of the Unites  States

The data represents the attempted fraudulent e-commerce transactions against the population of overall e-commerce orders ranked by the fraud attack rate.Delaware, Oregon, and Florida were the top-ranked states for billing and shipping e-commerce fraud in 2016. Both Oregon and Delaware saw an increase in e-commerce billing fraud attacks of over 200 percent. Three states, Florida, California and New York, accounted for more than 70 percent of total e-commerce billing fraud  attacks.

“One of the major drivers for the increase in fraud attacks is the continued adoption of EMV terminals for chip-and-pin credit cards. While these cards reduced counterfeit credit card fraud at the point-of-sale, they have driven fraudsters online. This pattern is similar to what other EMV markets saw when transitioning to chip-and-pin cards,” said Adam Fingersh, Experian general manager and senior vice president of Fraud and Identity Solutions. “As more compromised data becomes available from breaches, it’s easier for fraudsters to get their hands on identity data requiring consumers and businesses to stay diligent in protecting  themselves.”

Download the 2016 Experian e-commerce fraud attack rates  rankings

According to Experian’s rankings of e-commerce fraud attack rates for 2016 the data  shows:

  • South El Monte, CA was the top ranked city for both shipping and billing fraud in 2016. The billing fraud attack rate was nearly double that of the second-ranked city, Port Reading, NJ.
  • Miami, FL, was home to the most ranked ZIP™ codes for e-commerce fraud accounting for 17 of the top 100 for shipping fraud and 20 of the top 100 for billing fraud.
  • 10 states saw an increase of over 100 percent in shipping fraudulent orders — Alaska, Colorado, New Mexico, Idaho, North Dakota, Maine, Montana, Iowa, South Dakota, and Wyoming.

Experian hosted a recent EMV fraud webinar with Julie Conroy from Aite that looked at how businesses and customers are affected. Additional fraud analysis of the rankings shares more of that data  trends.

Having the right fraud solution in place can help businesses prevent losses especially when it comes to authenticating consumers while still maintaining a positive customer experience. Experian’s fraud and identity business is a global leader in the identity and fraud market saving more than $2 billion  worldwide.

About  Experian

Experian is the world’s leading global information services company. During life’s big moments — from buying a home or a car to sending a child to college, to growing a business by connecting with new customers — we empower consumers and our clients to manage their data with confidence. We help individuals to take financial control and access financial services, businesses to make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and  crime.

We have 17,000 people operating across 37 countries and every day we’re investing in new technologies, talented people and innovation to help all our clients maximize every opportunity. We are listed on the London Stock Exchange (EXPN) and are a constituent of the FTSE 100 Index. Learn more at www.experianplc.com or visit our global content hub at our global news blog for the latest news and insights from the  company.

Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective  owners.

Experian is a nonexclusive full-service provider licensee of the United States Postal Service®. The following trademark is owned by the United States Postal Service®: ZIP. The price for Experian’s services is not established, controlled or approved by the United States Postal  Service.

SOURCE  Experian

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.