Consumer Concern About Holiday Fraud Comes True

PORTLAND, Ore., Dec. 5, 2019 /PRNewswire/ -- iovation, a TransUnion company, today released new findings around online retail trends during the start of the 2019 global holiday shopping season. The research shows a 29% increase in suspected online retail fraud during the start of the 2019 holiday shopping season compared to the same period in 2018, and a 60% increase in suspected e-commerce fraud during the same period from 2017 to 2019. The findings are based on the online retail transactions analyzed for its e-commerce customers between Thanksgiving and Cyber Monday over the last three years.

"This data unfortunately reinforces the fraud fears that consumers expressed in our recent survey," said TransUnion Senior Vice President of Business Planning and Development, Greg Pierson. "Among the conclusions from TransUnion's 2019 Holiday Retail Fraud Survey: nearly half of all consumers, 46%, are concerned with being victimized by fraudsters this holiday season with baby boomers being the most concerned of any generation at 54%."

In addition to the above findings, iovation released:

The percent of suspected fraudulent e-commerce transactions during the start of the holiday shopping season and entire year compared to legitimate transactions for the past three years.

• 15% from Nov. 28 to Dec. 2, 2019. 10% so far in 2019.
• 13% from Nov. 22 to Nov. 26, 2018. 11% all of 2018.
• 11% from Nov. 23 to Nov. 27, 2017. 7% all of 2017.

The top days during the start of the 2019 holiday shopping season for legitimate and suspected fraudulent online retail transactions.

• Thanksgiving, Nov. 28: 16% of legitimate holiday weekend transactions (#5). 17% of suspected fraudulent holiday weekend transactions (#4-tie).
• Black Friday, Nov. 29: 26% of legitimate holiday weekend transactions (#1). 25% of suspected fraudulent holiday weekend transactions (#1).
• Saturday, Nov. 30: 19% of legitimate holiday weekend transactions (#3). 19% of suspected fraudulent holiday weekend transactions (#3).
• Sunday, Dec. 1: 17% of legitimate holiday weekend transactions (#4). 17% of suspected fraudulent holiday weekend transactions (#4-tie).
• Cyber Monday, Dec. 2: 22% of legitimate holiday weekend transactions (#2). 21% of suspected fraudulent holiday weekend transactions (#2).

The countries and U.S. cities where the highest percentage of suspected fraudulent e-commerce transactions originated from during the start of the 2019 holiday shopping season.

Country

1. China: 57%
2. Central African Republic: 57%
3. Lebanon: 45%

U.S. City

1. Boardman, Oregon: 70%
2. Pineville, Louisiana: 42%
3. Alexandria, Louisiana: 38%

Mobile Transaction and Fraud Trends
iovation also found that consumers used a mobile phone or tablet for 63% of their online retail transactions during the start of the 2019 holiday shopping season. That is up from 58% for the same period in 2018 and 56% for the same period in 2017.

For the holiday shopping weekend, retail transactions from a mobile phone compared to all e-commerce transactions were:

• 64% on Thanksgiving, Nov. 28
• 63% on Black Friday, Nov. 29
• 67% on Saturday, Nov. 30
• 66% on Sunday, Dec. 1
• 57% on Cyber Monday, Dec. 2

"Year after year it becomes clear that when not at work, consumers increasingly prefer using their mobile devices to make retail purchases due to their convenience," said iovation's Senior Director of Customer Success, Melissa Gaddis. "Once at work when they're at their desk, consumers turn to their desktop and laptop computers to make purchases."

Always trying to emulate the purchasing patterns of trusted consumers, mobile is also the preferred method for fraudulent online retail transactions. iovation found that a mobile phone or tablet appeared to be used for 63% of all suspected fraudulent e-commerce transactions during the long holiday shopping weekend compared to 59% from the same period in 2018 and 51%  from the same period in 2017.

For downloadable images about iovation's holiday online retail findings, go here.

About iovation
iovation, a TransUnion Company, was founded with a simple guiding mission: to make the Internet a safer place for people to conduct business. Since 2004, the company has been delivering against that goal, helping brands protect and engage their customers, and keeping them secure in the complex digital world. Armed with the world's largest and most precise database of reputation insights and cryptographically secure multifactor authentication methods, iovation safeguards tens of millions of digital transactions each day.

SOURCE iovation

Related Links

www.iovation.com