Online Fraud on The Rise - Legal News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Legal » Online Fraud on The Rise

Online Fraud on The Rise

Online Fraud on The Rise
October
5

More and more Americans are making online and mobile purchases and according to a new Experian study along with this trend there is also an upswing in e-commerce fraud – specifically shipping and billing fraud.

This data comes on the heels of the one-year anniversary of EMV chip technology being rolled out across the U.S. This new tech is designed to thwart in-store fraud by making counterfeiting credit and debit cards harder, but even with the focus on new in-store tech e-commerce fraud attack rates are up 15% from last year.

Bringing home the point that the spike in e-commerce fraud is connected to crimes committed when the actual card is not on site – meaning online and mobile transactions – and this kind of fraud is most often linked to credit card theft, personal data being stolen and identity fraud.

Suggesting that cyber thieves are looking for new opportunities to when confronted with the EMV roll out. “Fraudsters continue to exploit new vulnerabilities, and perpetrate card-not-present fraud against businesses using stolen consumer identity and payment data,” said Adam Fingersh, Experian general manager and senior vice president of Fraud and Identity Solutions. “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.”

Miami, Houston, and Eudora we have a problem

In the study Experian looked into shipping and billing fraud, with the billing address typically belonging to the victim of the fraud and the shipping address being a drop off point for the falsely purchases merchandise.

They did a zip code by zip code analysis and determined the riskiest zip codes, finding that certain ones lead the way in terms of fraud with Miami taking the top spot for both billing and shipping fraud, while Houston took the top spot for billing fraud, and Eudora, Kansas, has the most shipping fraud.

Upswing in e-commerce sales too

Experian indicates that the upswing in e-commerce fraud goes hand-in-hand with a 16% increase in e-commerce sales within the U.S. based on data from the U.S. Department of Commerce. This represents the biggest year-over-year increase since the third quarter of 2014. Given this data the increase in the accompanying fraud is not all that surprising.

For this study Experian looked at millions of e-commerce transactions made during the half of 2016. While doing so they identified the newest fraud attack rates when it came to shipping and billing within the United States.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Ethoca and FICO Fighting CNP Fraud
Ethoca and FICO Fighting CNP Fraud

Posted: January 27, 2017

FICO and Ethoca, a technology company, are partnering up on a project providing card issuers and online merchants with a way to not only boost card acceptance, but to thwart ecommerce fraud and disputes. Continue reading
Revue Upswing for U.S. Businesses
Revue Upswing for U.S. Businesses

Posted: October 03, 2016

Income is up for both small- and mid-sized U.S. companies conducting business in the world market, whether selling services or merchandise, according to the 2016 American Express Grow Global Survey. Continue reading
Global Fraud On Hackers To-Do List This Season
Global Fraud On Hackers To-Do List This Season

Posted: December 02, 2016

With the holiday shopping season upon us, retailers around the world can expect a 12% bump in online fraud when compared with data from the holiday season last year. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit