ACI Worldwide says it expects a 12% growth in online fraudulent activity in the upcoming holiday season, compared with the same period last year—and lower ticket prices on fraudster-targeted gifts and products.
ACI says following the U.S. adoption of EMV chip cards, which protects card data through encryption, fraud is shifting online as fraudsters are more effectively deterred from in-store fraud. The 2015 trend of lower ticket prices will continue in 2016, due to alternative shipping methods (e.g. buy online/pick-up in-store), low-priced electronics and promotions.
In the U.S., attempted fraud average ticket value (ATV), or a retailer’s average size of individual sales by credit card, is expected to decline from $239 to $219, an 8% decrease. Fraudsters are expected to focus on cosmetics, cordless headphones, sneakers and other lower-priced items (including ‘Gift with Purchase’ products) that can be easily resold on the black market or via auction websites
ACI further notes attempted online fraud rate by region reveals Africa: 4.3%, Europe: 3.6%, Asia: 3.6%, South America: 2.3%; North America: 1.6%. The expected peak fraud attempt day will be Christmas Eve, with nearly 2.5% fraud, due to the popularity of gift cards and last-minute shopping via buy online-pick up in-store. Cyber Monday is now expected to have the highest processing volumes of any day of the year—followed closely by Black Friday
A key component of the UP Merchant Payments and UP Payments Risk Management solutions, ACI ReD Shield is a premier CNP fraud detection and prevention solution for eCommerce merchants. ACI’s UP portfolio of solutions orchestrates all aspects of payments processing for any payment type, any channel, any currency and any network. ACI recently bolstered its cross-border eCommerce payment and CNP capabilities with the acquisition of PAY.ON, a leader in eCommerce payment gateway services.
ACI Worldwide powers electronic payments for more than 5,100 organizations around the world. More than 1,000 of the largest financial institutions and intermediaries as well as thousands of global merchants rely on ACI to execute $14 trillion each day in payments and securities. In addition, myriad organizations utilize our electronic bill presentment and payment services. Through our comprehensive suite of software and SaaS-based solutions, we deliver real-time, immediate payments capabilities and enable the industry’s most complete omni-channel payments experience.
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