Digital Transactions
As e-commerce volume soars during the holiday season, so does the risk of fraud. Between Thanksgiving Day and Cyber Monday, the Monday after Thanksgiving, 18% of e-commerce transactions originating in the United States were identified as potentially fraudulent, according to a report from TransUnion LLC. On a global basis, 15% of e-commerce transactions were considered potentially fraudulent.
TransUnion analyzed same-store e-commerce sales from more than 40,000 Web sites and apps contained in its TruValidate fraud-detection solution.
As part of its analysis, TransUnion found that the risk of fraud for U.S. e-commerce transactions is 127% greater between Thanksgiving and Cyber Monday than it was from Jan. 1 thru Nov. 23, the day before Thanksgiving. Globally, the risk of fraud on an e-commerce transaction during the same period was 82% higher than it was from New Year’s Day thru Nov. 23.
Promotion abuse and account takeover were the leading fraud-attempt types, according to TransUnion.
Black Friday, the day after Thanksgiving, was the day when online fraud was most likely to occur, with 26% of online transactions flagged for fraud, followed by Cyber Monday, with 24% of online transactions identified as potentially fraudulent. Fraud was least likely to occur on Thanksgiving Day, with 12% of online transactions being potentially fraudulent.
“Despite the fact that consumers have begun returning in larger numbers to in-person shopping in the post-pandemic era, online retail continues to be the preferred means of holiday-shopping for many. It’s important that online retailers ensure consumer security and privacy protections, which is important to consumers, but in a way which ensures a seamless shopping experience that minimizes unnecessary friction,” said Shai Cohen, senior vice president and head of global fraud solutions for TransUnion, in a prepared statement.