The holiday season is the perfect time for fraudsters to amplify their activities as they often go unnoticed by retailers who are under pressure to deliver the right offers and maximize on sales.
In December 2018, NuData, a Mastercard company and leader in the field of online user verification, helped retailers worldwide identify over 1 billion irregular digital activities and stop 99 percent of these fraudulent attacks, saving retailers worldwide over $500 million.
“Ecommerce is particularly vulnerable during the holiday season. Amidst all the shopping frenzy, retailers struggle to verify and assess the identity of the individual on the other end of a device without causing inconvenience to legitimate shoppers.”
“Using NuData security solutions, retailers can add a layer of intelligence to websites and mobile applications to detect threats without creating friction in the shopping experience.”
Ryan Wilk, vice president, Customer Success, NuData
Using machine learning, NuData, analyzed events in real time to anticipate and prevent fraudulent card-not-present transactions, which includes ecommerce payments.
It flagged 52 percent of login traffic – 50 percent from desktops and 35 percent from mobile devices – as fraudulent by monitoring website traffic changes, analyzing sudden changes in browser type, surfing speed and time on page and stopping them as high-risk deviations.
By accurately flagging these events as fraudulent, retailers could stop access or monitor them closely to prevent fraud.
Insights from NuData indicate that fraudsters laid the groundwork months before the holiday season.
Fraud attempts started well before December. In fact, NuData identified and flagged 37 percent of the new customer accounts created in October as high risk.
This number spiked from the yearly average of 14 percent. In addition, botnet attacks were up 224 percent in the month of September. NuData also noted that abnormal behavior across logins, IP addresses or purchase behavior was up 47 percent for the same month.
Did you experience any fraud or fraud attempts over the holiday season? Please use the comments section below or head over to our Facebook Group for Small Business Sellers and interact with other small business owners.