E-Commerce Transactions and Fraud Rates Both Rise in April

E-Commerce Transactions and Fraud Rates Both Rise in April

May 14, 2020

As lockdowns around the globe continued in April, people headed online to shop. The general retail sector saw 209 percent growth in e-commerce transactions in April compared to the same period last year, according to new analysis from ACI Worldwide. Following general retail, the gaming segment saw the biggest bump, up 126 percent year-over-year in April. 

Some retail sectors saw declining transaction volumes because of the pandemic, including ticketing, travel and online dating.

ACI noted there was an average transaction volume growth of 23.5 percent in April versus the same period last year. By comparison, there was a 5.3 percent increase in March 2020, when lockdowns first came into effect.

“Trends in e-commerce purchasing behaviors that we began to see in March have continued in April, as hundreds of millions of consumers around the world adapt to the restrictions put in place to inhibit the spread of the coronavirus,” said Debbie Guerra, executive vice president at ACI Worldwide. “Consumers are increasingly making use of click-and-collect options because of convenience and safety—but these changing patterns also attract fraudsters, resulting in a significant uptick in attempted fraud.”

The research also finds fraud attempt rates reached 4.3 percent in April, slightly down from 5.3 percent in March, but still up from 3.8 percent last year. Attempted fraud was focused on segments that have seen high sales growth, such as consumer electronics, with the average ticket price of attempted fraud up $26. 

“Consumers are increasingly making use of click-and-collect options because of convenience and safety—but these changing patterns also attract fraudsters, resulting in a significant uptick in attempted fraud.”

Click-and-collect—or buy online, pick up in store—also accounted for a rise in attempted fraud. The transactional value of attempted fraud rose by 9.9 percent, reflecting fraudsters’ continued emphasis on popular high-value items including laptops and TVs.

Chargebacks for non-fraudulent reasons (i.e., friendly fraud) were up 25 percent through the end of March, said ACI officials. 

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