"Over the last couple years, we've seen a dramatic increase in the use of mobile banking and now, as evidenced by our holiday shopping stats, we're seeing a similar rise for retail," said iovation Vice President of Product Scott Olson. "This is a tipping point for online retail purchases."
Besides tracking online retail purchases, iovation closely analyzed cyberfraud during the beginning of the holiday shopping season. According to iovation, from Black Friday to Cyber Monday 2013, 0.5 percent of all online retail purchases were fraudulent. This dramatically dropped from the same period in 2012, when 1.5 percent of all online retail purchases were fraudulent.
The top types of fraudulent online retail purchases from Black Friday to Cyber Monday 2013 were:
· Credit card fraud--Using someone else's unauthorized credit card to make a purchase.
· Scams and solicitations--Sending a consumer to a fake retail site that phishes for personal information like credit card and social security numbers.
"Historically, we've found that cybercriminals prefer to use a 'traditional' computer to make their purchases," said iovation Chief Technology Officer Scott Waddell. "The fact that the cyber fraud rate is down this holiday season could be a by-product of the uptick in mobile purchases along with the naturally higher rate of good transactions on these busiest shopping days of the year."
The findings were the result of iovation analyzing millions of transactions from its customers by leveraging its flagship fraud-finding service, ReputationManager 360, the world's most comprehensive solution for shared device reputation. ReputationManager 360 identifies potentially fraudulent transactions through the analysis of devices' online behavior, helping to prevent credit card fraud, identity theft, account takeovers and other abuses.
iovation protects online businesses and their end users against fraud and abuse through a combination of advanced device identification, shared device reputation and real-time risk evaluation. More than 2,300 fraud managers representing global retail, financial services, insurance, social network, gaming and other companies leverage iovation's database of Internet devices and the relationships between them to determine the level of risk associated with online transactions. The company's device reputation database is the world's largest, used to protect more than 10 million transactions and stop an average of 200,000 fraudulent activities every day. The world's foremost fraud experts share intelligence, cybercrime tips and online fraud prevention techniques in iovation's Fraud Force Community, an exclusive virtual crime-fighting network. For more information, visit www.iovation.com.