Experian: US e-commerce fraud increases as EMV acceptance grows
Delaware, Oregon, and Florida were the top-ranked states for billing and shipping e-commerce fraud in 2016, according to a new report from Experian.
Both Oregon and Delaware saw an increase in e-commerce billing fraud attacks of more than 200 percent. Three states — Florida, California and New York — accounted for more than 70 percent of all e-commerce billing fraud attacks.
"One of the major drivers for the increase in fraud attacks is the continued adoption of EMV terminals for chip-and-pin credit cards," Adam Fingersh, Experian general manager and senior vice president of fraud and identity solutions, said in a press release. "While these cards reduced counterfeit credit card fraud at the point of sale, they have driven fraudsters online. This pattern is similar to what other EMV markets saw when transitioning to chip-and-pin cards. As more compromised data becomes available from breaches, it's easier for fraudsters to get their hands on identity data requiring consumers and businesses to stay diligent in protecting themselves."
According to Experian's rankings of e-commerce fraud attack rates for 2016, the data shows:
- South El Monte, California was the top-ranked city for both shipping and billing fraud in 2016. The billing fraud attack rate was nearly double that of the second-ranked city, Port Reading, New Jersey.
- Miami was home to the largest number of high-ranking ZIP codes for e-commerce fraud; the metro accounted for 17 of the top 100 for shipping fraud and 20 of the top 100 for billing fraud.
- Ten states saw an increase of more than 100 percent in the shipment of fraudulent orders. The states were: Alaska; Colorado; New Mexico; Idaho; North Dakota; Maine; Montana; Iowa; South Dakota; and Wyoming.