Delaware, Oregon, and Florida were the top-ranked states for billing and shipping e-commerce fraud in 2016. Both Oregon and Delaware saw an increase in e-commerce billing fraud attacks of over 200%. Three states, Florida, California and New York, accounted for more than 70% of total e-commerce billing fraud attacks.
Experian’s “2016 E-commerce Fraud Attack Rates Rankings” analyzed millions of e-commerce transactions and ranked the top states, cities and ZIP codes for shipping and billing fraud across the U.S..
The data represents the attempted fraudulent e-commerce transactions against the population of overall e-commerce orders ranked by the fraud attack rate.
Experian says one of the major drivers for the increase in fraud attacks is the continued adoption of EMV terminals for chip-and-pin credit cards. While these cards reduced counterfeit credit card fraud at the point-of-sale, they have driven fraudsters online. This pattern is similar to what other EMV markets saw when transitioning to chip-and-pin cards.
According to Experian’s rankings of e-commerce fraud attack rates for 2016 the data shows:
• South El Monte, CA was the top ranked city for both shipping and billing fraud in 2016. The billing fraud attack rate was nearly double that of the second-ranked city, Port Reading, NJ.
• Miami, FL, was home to the most ranked ZIP codes for e-commerce fraud accounting for 17 of the top 100 for shipping fraud and 20 of the top 100 for billing fraud.
• 10 states saw an increase of over 100% in shipping fraudulent orders — Alaska, Colorado, New Mexico, Idaho, North Dakota, Maine, Montana, Iowa, South Dakota, and Wyoming.