Online retailers lost US$3.5bn in sales last year through fraud and currently there are more than 250m compromised identities and credit cards available for sale, a new infographic by Trustev claims.
According to Trustev, which verifies online shoppers’ identities using various data points from social fingerprinting to deep location, email verification and device ID, fraud is starting to eat seriously into the revenues and profits of major e-commerce services.
Trustev detected that 37pc of frauds involve efforts to hide the location behind the transaction.
But as more and more transactions go mobile it is harder for merchants to tie down accurate transaction locations.
Compromised devices and automated behaviours were detected in 34pc of all fraud attempts.
At least 29pc of fraud attempts involved information gleaned from social networks or attempts to manipulate individuals via social media.
Deluge of online identities leaked online
“In the 12 months since we started Trustev, the world has seen a deluge of personal identity information and credit cards leak online,” said Pat Phelan, CEO of Trustev.
“The ease with which fraudsters can now buy and use credit-card information is shocking, the majority of online merchants just aren’t ready for it.
“The modern fraud industry is entirely data driven, but until now it’s been hard to know just how much risk retailers are facing,” said Phelan, who added that most companies affected by fraud are incredibly secretive.
ID thief image via Shutterstock