Amid a massive increase in e-commerce sales, the value of the average fraudulent transaction was up 70 percent in the fourth quarter of 2020 compared to a year earlier, according to a new report. In its Q4 2020 Digital Trust & Safety Index: Holiday Fraud and the Shifting State of E-Commerce, antifraud technology provider Sift found that the average value of an attempted fraudulent purchase rose to $710 in October and November of 2020, compared to only $416 during the same period in 2019.
The increase comes as it is easier than ever for fraudsters to hide in the crush of transactions associated with Covid-19. In fact, for the entire year of 2020, average transaction volumes each and every day resembled those experienced by merchants on the very busiest days of the year in 2019. The report found average daily transaction volumes for all of 2020 were 88 percent of the daily volume that occurred on Black Friday weekend in 2019.
“With the pandemic’s impact, cybercriminals are taking bigger swings by increasing the value of their attacks and attacking more channels,” said Jason Tan, CEO of Sift. “But by spacing them out over time and turning down the volume on blitz-style abuse, fraudsters have become more difficult to pinpoint, and fraud much harder to prevent.”