Online Fraud Rates Expected To Skyrocket This Holiday Season As A Result Of The EMV Liability Shift By Ella Online fraud rates are going to increase this holiday season largely because of the success of EMV implementation across the United States. EMV has been a great success for financial institutions and merchants throughout the United States. There have been some hiccups along the way, but overall, it’s been a huge success. This is demonstrated by ACI Worldwide research that indicates that financial institutions and retailers are expecting card not present fraud rates to increase by 43% and 31% in volume. The reason why they’re expecting such an increase is because EMV compliance has made it difficult for cyber crooks to commit in store fraud. Now fraudsters are moving online where they don’t have to worry about dealing with EMV security measures. Holiday Season Shopping Trends And Fraud The holiday season always see’s an increase in incidences of fraud. The two periods in the U.S. that see the biggest increases are Thanksgiving and Christmas. We expect fraud rates will increase around Christmas Eve because of last minute shopping by consumers. Regarding other holidays, Cyber Monday has the highest processing volumes of any other holiday specifically. This is closely followed by Black Friday. There are some other key findings regarding this latest research such as: CNP global online fraud rates expected to rise by 12% in volume. Sales will rise by 13% in 2016 holiday period. Lower ticket prices is a trend forecast to continue well into 2016 as consumers embrace alternative shopping methods like buying directly online, pick up in-store over delivery, and low-priced gift shopping cards. There will be an 8% decrease in attempted fraud average ticket value. They expect it will go from $239 to $219 per individual sale by credit card. Fraudsters are primarily focusing on specific areas like cosmetics, sneakers, and low-priced electronics that are easy to sell on auction sites and on the black market. Don’t become a victim of fraud this holiday season! Online Fraud Rates Matching Global Retail Growth It has been noted that fraud rates and fraud rates are increasing exponentially globally at the same time. This is especially true here in the U.S. where cyber criminals are now shifting from in store fraudulent activity to online. Here is what Mike Braatz, chief product officer at ACI Worldwide had to say: “Fraud is increasing at a rate nearly equal to general retail growth globally, and is exponentially increasing in the U.S., due to a seismic shift from in-store to online activity.” It’s crucial that merchants are well-prepared for the fraud wave that is going to hit them this holiday. This is especially relevant for merchants operating in retail and other industries where consumers shop heavily during holiday season. What Can Merchants Do To Prevent Holiday Season Fraud? If you haven’t done so already then the first thing you should do is secure your store against in-store fraud. You can start by achieving EMV compliance and being certified as compliant. There are other steps you can take as well, which you can read about here. Lastly, make sure your online transactions are secure. You don’t want customers complaining about being hacked while making purchases using your store’s online payment system. It will be a big blow for customer retention and your own business’ reputation if this is a result of negligence on your part. Take appropriate security measures to combat card not present fraud like PaymentLock for example. Get in touch with us today if you’d like to find out more about preventing fraud in your business.