Study reports $57.8 billion in ecommerce fraud losses

The index analyzes fraud attempts on eCommerce merchant websites, reflected as a percent of eCommerce sales transactions and what’s trending. The industries examined in the study include: alcohol, tobacco and cannabis; apparel; consumer electronics; cosmetics and perfumes; department stores; furniture, appliances and home improvement; health, leisure and hobbies; jewelry and precious metals. Additionally, the index takes a deep-dive on the state of fraud in Australia, where ecommerce business frauds are rising rapidly.

In terms of Merchant Fraud Prevention statistics, the fraud rate for transactions valued over $500 was over 22 times higher than for transactions valued under $100. Fraud rates for transactions exceeding $500 increased from 10.93 percent to 11.47 percent, while transactions under $500 showed an overall decrease in fraud rate.

As shown in the report, Account Takeover fraud had begun rising sharply months before the Equifax data breach was announced. But with the breach compromising the personal data of at least 143 million people (nearly 45 percent of American adults), the account takeover fraud trend is unlikely to come to an end any time soon. Deloitte, Sonic, Whole Foods, and even the U.S. Securities and Exchange Commission (SEC) have suffered similar experiences in data breaches of unknown severity.

Global fraud index fast facts:

• $57.8 billion: value of potential fraud in the eight industries examined in the Index.
• 5.5 percent: increase in total fraud from Q2 2016 to Q2 2017.
• 11.64 percent: fraud rate of transactions exceeding $500, 22 times higher than the rate of transactions worth less than $100.
• 171.9 percent: increase in the rate of fraud in the cosmetics and perfumes industry.

Each index quantifies the rate and changes of fraud attempts on eCommerce merchants by examining different aspects of fraud. Some of these aspects include countries, regions and industries most seriously affected by fraud, as well as what action can be taken to stop or slow fraud trends.

To access the complete Global Fraud Index, please click here.

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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 from chargeback fraud, 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 prevents 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.