Christmas Eve: Not A Fraudster Was Sleeping
Christmas Eve is just days away! That glorious “light-at-the-end-tunnel” that spells the end of the holiday eCommerce rush. The “we-made-it-through-the-madness-and-nobody-died” conclusion of the season, when the last few urgent orders have been shipped and the counting of record sales and profits can begin. Woo hoo!
But wait. Before you get too comfy in your pink pajamas with bunny slippers, keep in mind that there are still 6 days AFTER CHRISTMAS where online sales of approximately $700 million per day are forecast!
And some online businesses will see bigger sales than others. Online sellers of party goods, event tickets, snacks and gift baskets, travel and lodging, wine, and champagne will be especially busy in the run up to New Year’s Eve!
Unfortunately, so will fraudsters.
We’ve been sharing the latest data from Black Friday, Cyber Monday and Green Monday in our blog posts “Comparing 2016 and 2017 Holidays: Trends in Naughty and Nice” and “Green Monday (2016 vs. 2017): Trends in Naughty and Nice". The findings are from a representative sample of the millions and millions of transactions we’ve processed for Kount’s high-growth online business customers from a cross section of different market segments.
Based on the “naughty” fraud trends we’ve seen, you better watch out because the fraudsters are likely to be active deep into January, especially in the mobile channel.
- Desktop fraud attacks increased at a rate 2x greater than sales growth.
- 334% increase in mobile app fraud attacks, at a nearly 20% faster rate than sales growth.
- 13% increase in mobile browser fraud attacks.
- 36% increase in desktop attacks, at a rate more than 3x greater than sales growth.
- 301% increase in mobile app attacks, at a rate 37% higher than sales growth.
- 27% increase in mobile browser fraud attacks.
- 194% increase in mobile app fraud attacks.
With that surge in fraudulent activity, the advice we shared in our blog post “Best Practices for Fighting Holiday Fraud” holds true for the days after Christmas, too:
- Analyze your data to determine normal behavior.
- Strategize abnormal buying patterns for the holidays.
- Determine your KPI benchmarks.
- Update your fraud rules and thresholds for risky orders.
- Place multiple layers of technology in the way of fraudsters.
- Train fraud analysts on holiday trends and train on a consistent basis.
- Review, analyze, and update as needed.
- Partner with your data team and/or fraud solution provider.
In the coming days, we’ll share more findings from the 2017 holidays. Stay tuned so you can stay informed and stay safe. Happy Holidays from all of us at Kount!