Online Thanksgiving Fraud

For the first time in several years, there was a drop in eCommerce card fraud on the Thanksgiving weekend.

According to new data from iovation, credit card fraud – the highest fraud type for online retailers – has dropped from 59% in 2016 to 42% in 2017 over the course of the four day holiday weekend. This 29% decrease shows how vigilant online retailers are becoming and that measures to identify and prevent card fraud are working.

iovation’s data also shows that 62% of consumer’s online retail transactions from Black Friday to Cyber Monday originated from mobile devices, compared to 55% during last year’s holiday season.

Greg Pierson, CEO and co-founder of iovation said:

“Online retailers who leverage device intelligence are making significant inroads when it comes to proactively preventing card-not-present fraud. This type of fraud not only cuts into their bottom line results, it can cause irreparable harm to their brand so this is a meaningful improvement”

A follow-up survey of 1000+ shoppers found while 84% of respondents understand how to protect their data online, most are still not using cryptic passwords. 60% said they don’t change their passwords regularly and 70% say they use the same password on multiple sites.  

Pierson continued:

“Attitudes towards online shopping shows that consumers are becoming better educated about how to protect themselves online. However, they remain largely complacent as it relates to their password hygiene, which is why we are seeing a steady rise in identity theft and account takeovers”

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