This post summarizes the press release published on May 31, 2017.
BOSTON–(BUSINESS WIRE)–eCommerce fraud as a percent of sales dollars has been declining across the board, except for two industries, since the first quarter of 2016. However, fraud losses still accounts for billions of dollars, and perhaps even more due to transactions declined incorrectly due to fear of fraud. PYMNTS.com and Signifyd have partnered to track, analyze and report on this and other important trends in the world of fraud as it relates to online payment and eCommerce in the newly released PYMNTS’ Q1 2017 Global Fraud Index™.
Each quarter, the Index monitors fraud attempts across more than 5,000 global ecommerce merchant websites*. Eight main industries were reviewed: alcohol, tobacco and cannabis; apparel; consumer electronics; cosmetics and perfumes; department stores; furniture, appliance and home improvements; health, leisure and hobbies; jewelry and precious metals. Fraud in each industry is examined across three key categories: Friendly Fraud, Account Takeover, and Stolen Financials. Additionally, each quarter a country is featured and this quarter’s focus is on the United States. In later quarters the focus will be on other parts of the globe.
Since early 2016, eCommerce fraud has been declining in most industries, with two notable exceptions: Department Stores and Jewelry and Precious Metals. One of the main reasons behind this decline is the use of machine learning in fraud prevention solutions that are raising the bar against a global network of cybercriminals. These machine learning solutions are doing a better job than previous solutions, which relied on static rules, of distinguishing real orders from fraudulent ones. The resulting decrease in total fraud from Q1 2016 to Q1 2017 is -34.7%, a substantial amount.
The Global Fraud Index™ is one of a series of industry indexes produced by the PYMNTS data and analytics team. They have developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem.
About PYMNTS: PYMNTS.com is reinventing the way that companies share relevant information about the initiatives that shape the future of payments and commerce and make news. This powerful B2B platform is the #1 site for the payments industry by traffic and the premier source of information about “What’s Next” in payments and commerce.
About Signifyd: Signifyd was founded to make fraud-free ecommerce available to every business. Signifyd solves the challenges that growing eCommerce businesses persistently face: billions of dollars lost in chargebacks, customer dissatisfaction from mistaken declines, and operational costs due to tedious, manual transaction investigation. As the world’s largest provider of Guaranteed Fraud Protection, Signifyd provides a 100 percent financial guarantee against fraud and chargebacks on every approved order. This effectively shifts the liability for fraud away from eCommerce merchants allowing them to increase sales and open new markets while reducing risk. Signifyd is in use by multiple companies on the Fortune 1000 and Internet Retailer Top 500 list. Signifyd is headquartered in San Jose, CA. For more information about Signifyd, please visit www.signifyd.com.