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Study: Most fraud happens on high-priced goods
While it may be simpler to steal smaller, lower priced goods in physical stores, in the online space the highest priced items have the highest percentage of fraud attached. That is the main takeaway from a new study out from 2Checkout, which found cable, pay TV and satellite categories have some of the highest rates of fraud.
2Checkout is a global online payments provider; for this study they tracked a sample of roughly 1 million global, online payments in the quarter. According to their data cable, pay and satellite television categories track about 4 times as much fraud as the industry average while home furnishings, books and needlework products have the least amount of fraud. These items track about one-tenth the industry average.
"As merchants seek sales growth by expanding internationally and selling into emerging growth markets, they will encounter fraud. I won't hazard a guess as to why pay TV and Indonesian purchases are so rife with fraud, but fortunately there are ways to detect it before damage is done," said Daniel Greenberg, acting chief marketing officer for 2Checkout. "While most payments vendors simply check CVV codes, we have 300-plus heuristics and some clever network intelligence to actively monitor and stop fraudulent transactions before they occur. This has provided us with some unique insights into the market. We wanted to share these with the public so that others may benefit."
Some interesting takeaways from the report include:
• Paypal has a lower fraud rate than most credit cards
• Some credit cards have a 3 times higher fraud rate than the average
• Transactions over $400 have 35% higher fraud rates than lower transaction values
• Denmark, Finland and Norway hold the lowest fraud rates
• Indonesia, Pakistan and Romania hold the highest fraud rates
Image via Shutterstock
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