A new report is challenging some of the conventional wisdom about online fraud. Antifraud technology provider Sift Science has aggregated data on 165 billion recent transactions and has released several surprising findings around how fraudster actually behave.
Heading into the holidays it might ease some merchants’ minds to know that, across Sift’s network, the single day with the highest rate of fraud is not Cyber Monday or Black Friday. It’s not even during the winter. For Sift customers, May 9 was the “fraudiest” day of the year. For travel companies, it was June 5 and for online retailers, it was July 14.
The company also reported several insights around account takeover fraud—a fraud type that has experienced tremendous growth in recent years. First, fraudsters rarely “age” accounts after gaining access to them, as you might expect. According to Sift, for businesses that experience the highest rates of ATO, activity on the account surges immediately—an average of 22 times the normal activity within a week. Another misconception around ATO, according to Sift, is that fraudsters will only use stolen account credentials once or a few times so they won’t raise any red flags. Sift found fraudsters will use a stolen account repeatedly until stopped.
Sift and its customers have real-time access to intelligence like this through a new dashboard built into its platform called Sift Insights. See more myths and realities uncovered in 10 Fraud Myths: Hidden Insights that Drive Business Decisions.