Online Fraud Increases 137 PercentMiCamp Solutions
The latest PYMNTS Global Fraud Index shows that online fraud rates are increasing, up 137% since Q1 2015 (the index analyzed the period from Q2 2015 to the end of Q1 2016).
As EMV-compliant payment processes become the norm, and credit cards become harder to counterfeit, criminals will start switching their focus from card-present environments to online targets. We see this already happening – online fraud attacks in the U.S. have increased 26% since the October 2015 liability shift.
According to The Global Fraud Index Report, there were “34 fraud attacks for every 1,000 transactions in Q1 of 2016, compared to 15 out of 1,000 observed during the second quarter of 2015.” The industries that criminals are increasingly targeting are food and beverage (attacks increased by 116%), luxury goods (attacks increased by 38%), and electronics (attacks increased by 21%). In addition to the quantity of fraud attacks increasing, the value of these fraudulent transactions saw an increase as well. The average transaction value for fraudulent food and beverage charges was $88.00, compared to $712.00 for luxury goods, and $279.00 for electronics.
And even as new technologies are being developed to increase payment security, criminals are coming up with more sophisticated and creative ways to steal data. Criminals are beginning to turn to automated methods for committing fraud – nearly 80% of fraud attacks in Q1 2016 were deployed by botnets.
The fraud attack rate has increased from quarter to quarter, making it clear that criminals will always be looking for new ways to put sensitive data at risk. But there are ways that merchants can protect their businesses and secure sensitive payment card data. Utilizing a multi-faceted security approach by employing EMV, end-to-end encryption, and tokenization will help merchants protect their businesses from a data breach, as payment card information is not stored, processed, or transmitted within their environment. Having industry-leading payment security technologies for their card-present and card-not-present environments will give merchants a competitive advantage – and peace of mind.
To learn more about protecting your business with a suite of security technologies, call us at 800.396.0246 or read up on our MiPoint solution.