There was a 20 per cent increase in online retail credit card fraud during the 2016 shopping weekend involving Black Friday and Cyber Monday compared to last year, research in the US shows.
The proportion of all online retail fraudulent transactions from Black Friday to Cyber Monday that involved credit card fraud reached 59 per cent.
The data, released by fraud prevention company iovation, revealed that while credit card fraud saw the biggest jump in terms of online retail, other types of fraud reported were identity theft, email scams, promotion abuse and account takeover.
Overall, the percentage of online retail transactions during the shopping weekend at the end of November that were fraudulent decreased compared to last year. It was 0.38 per cent for 2016 and 1.16 per cent in 2015.
The rise in online credit card fraud can be attributed to the recent shift from consumers using traditional credit and debit cards with magnetic strips to EMV (Europay, MasterCard, and Visa) chipped cards, according to iovation.
While the new chip cards have proven to combat card-present fraud, it is now clear that fraudsters are turning online, says iovation CTO Scott Waddell.
“The shift from in-person card fraud to card-not-present fraud shows that cybercriminals are quick to shift the focus of their scams,” he said.
“Much like EMV became a major weapon for in-person merchants, new authentication approaches will be the antidote to curb this new trend.”