December 14, 2017
December 13, 2017
December 11, 2017
Posted January 5, 2015
During Xmas Week, ThreatMetrix Finds Existing Account Logins Growing to 80 Percent as Customers Return to Trusted Sites
In addition to the ThreatMetrix Global Trust Intelligence Network (The Network) preventing more than 11.4 million attempted fraudulent transactions over the holidays, data from The Network showed that over Christmas Week (Dec. 20 – 28) there was a continuing shift toward mobile shopping (specifically on iPhones) and an increased number of logins to trusted retailers.
Final holiday-week spending surge
According to ComScore, the final week leading up to Christmas saw an 18 percent hike in spending over 2013. This increase in last-minute shopping leading up to the holidays was followed by continued shopping directly after – consumers using gift cards, making additional purchases following returns, etc. Looking to cash in on the increased spending, cybercriminals were also exceptionally busy over the same period.
Ken Jochims, ThreatMetrix’s director of product marketing, notes
“The week before Christmas was full of last-minute shoppers who were too busy to finish all their shopping until the holiday week, and many of those shoppers turned to online channels up until the last minute,” said Ken Jochims, director of product marketing at ThreatMetrix. “Cybercriminals follow the money – especially around the holidays. Fortunately, The Network prevented millions of fraudulent transactions this holiday season, saving hundreds of millions of dollars in fraud losses for our customers.”
Using data from The Network, several key trends in online spending over Christmas Week emerged including:
“Customers returned to trusted sites to make purchases throughout the holidays,” said Jochims. “But maintaining trust requires a high level of security that needs to be transparently applied without disrupting the shopping experience. Dialing up security while decreasing friction is a challenging requirement that can only be accomplished by implementing a security solution that can deliver real-time fraud prevention based on contextual intelligence. Retailers need to ensure that only trusted customers create and access accounts so they can easily make repeat purchases throughout the year – while keeping the bad guys out. ThreatMetrix delivers this protection year round protecting major retailers from all types of fraudulent activity, accelerating commerce and creating trust.”
Approximately 63.9 million iPhone 6 devices have been sold since the iPhone’s September release. Likely, there is a correlation between the number of phones sold and the iPhone dominating mobile purchasing.
The Network also detected a general pattern in mobile usage. It was low on Mondays, gradually climbed through the week with a boost on Saturdays and peaking on Sundays. On Monday, mobile usage tapered off again.
After Christmas Eve, dollar transactions continued to drop because people were, for the most part, done with their holiday shopping. Instead, they began redeeming gift cards.
In the four weeks between Thanksgiving Day and Christmas Day, analysis of The Network’s data found that Mondays generally had the highest number of transactions as well as the highest dollar value per transaction.
“It appears consumers are comfortable getting back to work and shopping online on Mondays,” said Jochims. “Consumers making online purchases on the weekends are often doing so from mobile devices or tablets in front of the TV or on-the-go, but on Monday they shop from desktop computers, where the data also shows consumers typically make larger purchases.”
Account creation fraud also grew 30 percent during Christmas Week while account login and payment fraud were both down slightly over the holiday.
The Network saved hundreds of millions of dollars over the holidays
ThreatMetrix was able to help stop more than 11 million attempted fraudulent transactions – equating to hundreds of millions of dollars. This was accomplished through the collective intelligence of ThreatMetrix’s global data repository, The Network, which analyzes more than 850 million monthly transactions, and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites. The Network is the most comprehensive data repository of its kind, using its real-time analytics to evaluate logins, payments, new account registrations, remote access attempts and other transactions for validity.