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Posted July 23, 2015
E-Commerce Merchants Without a Layered Security Strategy Must Brace Themselves for the Holiday Shopping Surge
San Jose, CA – July 23, 2015 – ThreatMetrix®, the fastest-growing provider of context-based security and advanced fraud prevention solutions, today announces several cybersecurity strategies for e-commerce merchants to prepare now for the upcoming holiday online shopping boom. As holiday shopping continues to evolve and spending grows each year, ThreatMetrix recommends e-retailers have a strong security strategy with shared threat intelligence in place prior to this holiday season.
Total holiday retail sales from November and December 2014 showed a four percent increase from 2013. During this time, ThreatMetrix prevented more than 11.4 million attempted fraudulent transactions during the 2014 holiday shopping season. If holiday sales continue to grow at a similar rate, cybercriminals will determine new strategies to cash in on the profits.
The height of the 2015 holiday shopping season comes immediately following the EMV chip deadline of October 1. While the adoption of EMV will make it more difficult for cybercriminals to copy account numbers and security codes associated with antiquated magnetic stripe cards, fraudsters will turn to different channels now that it’s more difficult to steal information in store which will ultimately lead to a rise in fraud in the U.S.—both online and via mobile devices.
“Generally, as retailers prepare for the holiday season, they tend to put off ramping up fraud prevention until it’s too close to the holidays—this should be done and mitigated in July or August to be prepared as soon as possible and work out any kinks in the cybersecurity system,” said Stephen Topliss, vice president services and support at ThreatMetrix. “The ultimate puzzle e-commerce merchants are trying to solve is what kind of effect integrated cybersecurity will have on their revenue, and whether or not the good customers will get caught up in these prevention measures.”
Top trends for the 2015 holiday shopping season will include an uptick in mobile fraud and high volume shopping days well in advance of the November and December timeframe. This year, Amazon Prime launched Prime Day in July, for which it claimed to offer better deals than Black Friday. Another significant shopping day early on is Alibaba’s Singles Day, which takes place on November 11 each year in China and surpassed U.S. Black Friday in 2014 with more than $9 billion in sales. With this in mind, consumers are thinking about holiday shopping well before the surge kicks off in November—which means fraudsters are as well.
During Cyber Week 2014 (Thanksgiving through Cyber Monday), ThreatMetrix found that 39 percent of transactions originated from mobile devices, with 80 percent of those transactions originating from iOS devices. Over the week of Christmas, that shift toward mobile continued, with a peak in mobile transactions taking place on Christmas Day, at about 35 percent. Additionally, iPhones alone drove almost three-quarters of all mobile e-commerce transactions during Christmas Week, up from 65 percent on Cyber Monday.
“As usage increases, retailers need to identify new strategies to mitigate mobile,” said Topliss. “Although mobile is quickly spreading across the e-commerce space, some retailers are very new to this concept and with this brings the possibility that they’re not aware of the fraud risks associated with mobile shopping. Mobile is the big unknown—the unquantifiable risk factor, and should be seen as a top target in the upcoming holiday season.”
To help retailers maintain a positive customer experience during the holidays without sacrificing security, ThreatMetrix has outlined several holiday shopping tips retailers can leverage to stay one step ahead of fraudsters. These include:
“When it comes to holiday shopping season, all bets are off—for fraudsters and for businesses alike—so being prepared and staying one step ahead of fraudsters is the best way to avoid a disaster from happening that’ll likely ruin everyone’s holiday cheer,” said Topliss. “With the ever-changing realm of online fraud, retailers have an advantage when it comes to safety—being prepared and proactive in their fraud prevention efforts can go a long way not only for their customers, but for their businesses as well.”
To help retailers accurately identify good customers while keeping cybercriminals at bay during the holiday shopping season, the ThreatMetrix® Digital Identity Network brings together all aspects of a person’s online devices and behavior into one unique digital identity – including email addresses, geo-locations, devices and both personal and business personas. The unique identity combines the specific device and persona each individual is using at any given time, at any place to accurately authenticate users in real time. This enables retailers to protect against fraud while reducing customer friction.
ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions leveraging a global shared digital identity network and real-time, customer-driven analytics platform. These solutions help customers differentiate between trusted users and potential fraud resulting in reduced friction, incremental revenue and lower fraud and operational costs.
ThreatMetrix secures customers against account takeover, payment fraud, fraudulent account registrations resulting from malware, and data breaches. Underpinning the solution is the ThreatMetrix Digital Identity Network, which analyzes more than one billion monthly transactions and protects more than 250 million active user accounts across 3,000 customers and 15,000 websites and mobile applications. ThreatMetrix is deployed by industry leaders across financial services, e-commerce, payments, social networks, government and insurance.
For more information, visit www.threatmetrix.com or call 1-408-200-5755.
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