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Fraudulent purchases in 2020 are now worth 70% more than in 2019

Friday 18 December 2020 14:59 CET | News

A new report by Sift has revealed that fraudsters are executing larger and more targeted attacks this holiday season, with each attempted fraudulent purchase in 2020 being worth 70% more on average than in 2019.

The report, titled Q4 2020 Digital Trust & Safety Index: Holiday Fraud and the Shifting State of E-commerce reveals that fraudsters are executing larger and more targeted attacks this holiday season. The findings have been derived from Sift’s network of sites and apps and concluded that the average attempted fraudulent purchase value rose to over USD 700 from October through November 2020, which is a 70% year-over-year increase during the same period in 2019.

Physical ecommerce saw a 378% rise in account takeover fraud as a byproduct of the shifting opportunities to exploit these types of businesses. BOPIS (buy online, pickup in store) and BORIS (buy online, return in store) have made shopping safer for consumers, however, merchants that that choose to forgo the usual verification steps in order to minimise person-to-person interactions found it difficult to stop fraudsters from placing orders online using stolen credit cards, and then picking up their purchases at a physical location or having them shipped to a new address.

2020 also saw the rise of ecommerce sales, the average daily order amount from April through November 2020 being 9% higher than that of the 2019 Black Friday weekend. Furthermore, the daily average ecommerce transaction volumes since April 2020 are 88% of the 2019 Black Friday weekend volume

The ecommerce order volumes over the 2020 Black Friday weekend were 64% higher than the daily average for 2020.

Another finding of the report is the fact that the attempted fraudulent order values rose on 29 November 2020, with the average attempted purchase reaching 475% of the October and November 2020 average as fraudsters looked to hide under the cover of restaurant and delivery service Black Friday deals.


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Categories: Fraud & Financial Crime
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Countries: World
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Fraud & Financial Crime






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