Global Cross-Channel Payment Fraud Increases 13 Percent During 2018 Peak Holiday Season
January 15 2019 - 8:00AM
Business Wire
ACI Worldwide benchmark data of top merchants
shows ‘buy online, pick up in-store’ is a growing focus as
card-present fraud becomes problematic for criminals
New benchmark data from ACI Worldwide (NASDAQ:ACIW), a leading
global provider of real-time electronic payment and
banking solutions, revealed a 13
percent increase in fraud attempts in the ‘buy online pickup
in-store’ (BOPIS) channel during the 2018 peak holiday season.
Based on hundreds of millions of merchant transactions, including
some of the world’s leading global retail brands, BOPIS also saw
consumer transactions peak at 20 percent right before Christmas as
shoppers bought last-minute gifts before the holiday.
“As chip-and-pin credit cards are harder for fraudsters to
replicate, it is driving them toward card-not-present,
cross-channel fraud,” said Erika Dietrich, global director,
Payments Risk, ACI Worldwide. “For example, fraudsters can use
stolen credit card information to make a card-not-present purchase
online and then simply walk in and pick up the item in-store. We’ll
see this trend continue to grow in the coming years, and merchants
will need to pay more attention to their omni-channel fraud
controls.”
Principal findings from the data include:
- Overall volume of purchases increased
by 16 percent, while overall value increased 9 percent compared to
the same period in 2017
- BOPIS transactions increased 20
percent, peaking the weekend prior to Christmas
- Fraud attempts on BOPIS increased 13
percent
- Volume of purchases increased by 27
percent while the value of purchases increased by 17 percent during
the weekend after Thanksgiving (November 24 and 25) in 2018,
compared to the same period in 2017
- Volume of fraud attempts increased by 1
percent, while the value of fraud attempts increased by 6 percent
in 2018 compared 2017
Thanksgiving Day
- Volume of transactions on Thanksgiving
Day increased 19 percent in 2018 compared to 2017
- Volume of fraud attempts on
Thanksgiving Day decreased to 1.24 percent compared to 1.83 percent
in 2017
Black Friday
- Volume of transactions on Black Friday
increased 20 percent in 2018 compared to 2017
- Volume of fraud attempts on Black
Friday decreased to 1.30 percent compared to 1.59 percent in
2017
Cyber Monday
- Volume of transactions on Cyber Monday
increased 9 percent in 2018 compared to 2017
- Volume of fraud attempts on Cyber
Monday decreased to 0.84 percent compared to 1.28 percent in
2017
“We saw genuine consumer transactions outpace fraudulent
transactions this past holiday season as merchant fraud strategies
kept pace in the market. In addition, merchants have become more
savvy as they are spreading out the volume of sales earlier in the
holiday season (October through November) compared to years past,
to reduce fulfilment and delivery bottlenecks,” Dietrich
continued.
ACI’s UP eCommerce Payments solution offers integrated,
real-time fraud management capabilities, which utilize artificial
intelligence, advanced machine learning and predictive and
behavioral analytics designed to maximize revenue conversion while
thwarting fraudulent activity. The award-winning solution offered
in ACI’s cloud is designed to scale for real-time fraud prevention
at peak and high volumes.
ACI will showcase its flexible, vendor-agnostic omni-channel
merchant payment solutions at NRF 2019, January 13-15, New York.
Visit ACI’s booth #3373 for an in-booth “Pop-UP” store
experience.
*Methodology:
The survey includes leading global merchants that utilize ACI
ReD Shield, representing hundreds of millions of transactions
globally; these merchants, most of which are among the top 100
retailers, have been utilizing ACI’s service for at least two
years.
Date Range:October 1, 2018 to December 31, 2018
Terminology:
- Volume: number of transactions,
comparing last year to this year, like for like global retail
customers
- Value: dollar value of transactions,
comparing last year to this year, like for like global retail
customers
- Fraud Attempt Rate: a transaction
associated to any one or more of the following:
- Transaction data point confirmed fraud
as a result of a merchant verifying
- Transaction data point matched a record
in ReD Shield global screening negative database – chargebacks,
credit card numbers being sold online in underground chat channels,
or reported as fraud by an issuer pattern matching a recent
confirmed fraud behaviour.
About ACI Worldwide
ACI Worldwide, the Universal Payments (UP) company,
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
solutions delivered on customers’ premises or through ACI’s private
cloud, we provide real-time, immediate
payments capabilities and enable the industry’s most
complete omni-channel payments experience. To learn more
about ACI, please visit www.aciworldwide.com. You can also
find us on Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2019.
ACI, ACI Worldwide, ACI Payment Systems, the ACI logo, ACI
Universal Payments, UP, the UP logo, ReD, PAY.ON and all ACI
product names are trademarks or registered trademarks of ACI
Worldwide, Inc., or one of its subsidiaries, in the United States,
other countries or both. Other parties’ trademarks referenced are
the property of their respective owners.
Product roadmaps are for informational purposes only and may not
be incorporated into a contract or agreement. The development
release and timing of future product releases remains at ACI’s sole
discretion. ACI is providing the following information in
accordance with ACI's standard product communication policies. Any
resulting features, functionality, and enhancements or timing of
release of such features, functionality, and enhancements are at
the sole discretion of ACI and may be modified without notice. All
product roadmap or other similar information does not represent a
commitment to deliver any material, code, or functionality, and
should not be relied upon in making a purchasing decision.
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version on businesswire.com: https://www.businesswire.com/news/home/20190115005046/en/
Dan RingE-mail: dan.ring@aciworldwide.comPhone:
781-370-3600Nidhi AlbertiE-mail:
nidhi.alberti@aciworldwide.comPhone: 781-370-3600
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