Report: Up to 13% of Global Online Transactions Could be Fraudulent

Report: Up to 13% of Global Online Transactions Could be Fraudulent

September 23, 2021

A new report estimates 10 to 13 percent of global online transactions are potentially fraudulent. The first Global Card-Not-Present Fraud Report from antifraud technology provider Vesta also found that the average value of a fraudulent transaction crossing its network ranged from $126 to $155.

In the report, Vesta also drew a distinction between fraudulent transactions with “direct linkage” and those with “indirect linkage.” A transaction with a direct linkage has a common connection that merchants can easily spot as fraud. Indirect linkages represent more sophisticated attacks that are harder to spot. The analysis found the average dollar value of fraud attacks with indirect linkage was notably higher than those with direct linkage (e.g., $158 vs. $101 in Q1 of 2021).

"Unfortunately, we're seeing fraudulent transactions with indirect linkage increasing across the board, and the average value of those transactions is higher than those with direct linkage, making it an even more expensive and complicated problem for merchants to navigate," said Vesta CEO Ron Hynes. "The only way to effectively identify and prevent CNP fraud with indirect linkage is with machine learning, and it's critical to use models that have been trained against millions of global transactions and can therefore draw connections that humans simply can't see."

The report also examined fraud in Mexico compared to the U.S. (fraud rates in Mexico are significantly higher, while average value of fraudulent transactions is solidly lower) and what operating systems accounted for the most fraud attacks (Android devices had the highest percentage of fraudulent transactions but the lowest average dollar amount stolen).

To download a free copy of the report, click here.

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