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Posted April 17, 2012
Study of Nearly a Billion E-Commerce Transactions Shows NYC to be the Leading City From Which Fraud Originates; Atlanta, Chicago, Los Angeles, and Omaha Round Out the Top Five
San Jose, CA – April 17, 2012 – ThreatMetrix™, the fastest-growing provider of integrated cybercrime prevention solutions, today announced the findings of a new study around the top U.S. cities for the origination of online fraud. The study revealed that New York is the nation’s epicenter for online fraudsters, followed by Atlanta, Chicago, Los Angeles, and Omaha respectively.
Leveraging a sample of nearly a billion transactions performed by select U.S.-based e-commerce merchants, ThreatMetrix reviewed the online activity for the first quarter of 2012, scoring each transaction with a fraud risk of low, medium or high. High risk transactions are typically rejected automatically by merchants while medium risk ones tend to result in manual review. The top 150 U.S. cities were then ranked based on their percent of high and medium risk transactions.
“New York was ranked No. 1 in e-commerce fraud risk with transactions 1.5 times as likely to be at risk in comparison to second ranked Atlanta, and twice as likely in comparison to No. 3 Chicago,” said Alisdair Faulkner, chief products officer, ThreatMetrix. “As fraudsters grow more sophisticated and expand globally, it’s only natural that large cities with international profiles, easy access to shipping and high connectivity rates will become breeding grounds for new generations of cyber threats, including both fraud and malware.”
Cybercrime is becoming an increasingly worrisome problem for e-commerce merchants, financial institutions and other online businesses. In 2011, 25 million new, unique strains of malware were released – a number that is projected to explode to 87 million by the end of 2015, according to the Aite Group.
Cities like New York, Chicago and Los Angeles are a gold mine for cybercriminals that steal identities, passwords and credit cards. We would expect to see a highly connected city like San Francisco rank higher, but perhaps the relatively substantial penetration of Apple devices which are largely seen to be less vulnerable to malware explains its relatively low ranking, added Faulkner.
The top 10 list of U.S. cities for fraud origination, ranked from highest to lowest includes:
1. New York
4. Los Angeles
7. San Francisco
9. Washington D.C.
10. Lexington, KY
With the recent acquisition of TrustDefender™, ThreatMetrix offers the only integrated solution that combines intelligent device identification with malware detection and remediation. Today, the company protects more than 5,000 websites for some of the world’s largest brands and profiles nearly 1 billion devices on a monthly basis.
Faulkner adds, “ThreatMetrix is committed to identifying and addressing the full range of cyber threats that are being deployed against e-commerce merchants and financial institutions – no matter where they originate. Like our clients, we are relentless in our efforts to stay ahead of the curve and to anticipate the next wave of attacks before they occur.”
Since a high number of cyber attacks originate outside the U.S., ThreatMetrix will release a similar list of the top international cities for fraud origination in future reports.
For more information, please visit the ThreatMetrix Resource Center at https://www.threatmetrix.com/resource-center/.
ThreatMetrix®, The Digital Identity Company®, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying more than 20 billion annual transactions supporting 30,000 websites and 4,000 customers globally through the ThreatMetrix Digital Identity Network®, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches. Key benefits include an improved customer experience, reduced friction, revenue gain and lower fraud and operational costs. The ThreatMetrix solution is deployed across a variety of industries, including financial services, e-commerce, payments and lending, media, government and insurance.
Walker Sands Communications