Highlights from the 2011 CyberSource eCommerce Fraud Survey

Highlights from the 2011 CyberSource eCommerce Fraud Survey

Mobile Commerce

  • 27% of merchants in the survey indicate they have made investments in mCommerce.
  • 97% of merchants in the survey feel fraud is equal to or lower than in eCommerce.

Fraud Order Rates Lower, Fraud Order Values Higher

  • Fraud rate by order down 33% (from 0.9% to 0.6%).
  • Percentage of online orders lost to fraud up slightly (from 0.9% to 1%).
  • Fraudulent average ticket higher than the average ticket of legitimate orders ($250 on average vs $150 on average).
  • Consumer Electronics (easy and lucrative to re-sell) and Digital Goods (harder to screen for fraud) carry highest fraud rates.
  • Largest merchants (with more resources) tend to have the best results in fighting fraud.

Merchants Successful in Fighting Fraud, but at a Cost

  • In 2011, merchants used an average of 4.9 fraud detection tools to automatically screen orders, vs 4.6 in 2010.
  • Merchants with over $25 million in online revenue used @8 fraud detection tools in 2011 (vs. 7.4 in 2010).
  • Merchants using Manual Review screened 27% of their orders (vs. 24% in 2010), and accessed 4.2 systems to conduct manual reviews (up from 3.7 in 2009).

International Orders Still Carry More Risk 

  •  Nearly 60% of merchants surveyed accepted orders from outside the US & Canada.
  •  7.3% of international orders rejected (vs. 2.8% domestic).
  •  2.0% international fraud order rate, 3 times higher than domestic (0.6%).
  •  25% of merchants surveyed stopped accepting international orders altogether.

Burlington Bank Card LLC is a registered ISO/MSP provider of Interchange Plus Credit Card Processing and an authorized Authorize.Net reseller.