May 30, 2014
Inaugural Fraud Index Report Finds You Can Trust Scandinavians and Book Buyers;
Be Wary of Indonesian and Cable TV Buyers
Press Release: Columbus, OH – May 28, 2014 – 2Checkout, a leading global online payments provider, today released their inaugural quarterly Fraud Index report. The study of online payments fraud is based on a worldwide sample of approximately one million payment transactions tracked each quarter.
Among the report findings:
As merchants seek sales growth by expanding internationally and selling into emerging growth markets, they will encounter fraud. I won’t hazard a guess as to why pay TV and Indonesian purchases are so rife with fraud, but fortunately there are ways to detect it before damage is done, said Daniel Greenberg, acting chief marketing officer for 2Checkout. While most payments vendors simply check CVV codes, we have 300-plus heuristics and some clever network intelligence to actively monitor and stop fraudulent transactions before they occur. This has provided us with some unique insights into the market. We wanted to share these with the public so that others may benefit.
As part of its Fraud Index monitoring activity, 2Checkout uses a sophisticated tiered defense system that automatically flags fraudulent purchase activity at the point of sale. 2Checkout sits between the buyer and seller and is able to intercept fraudulent transactions before they cause financial harm to the seller.
A copy of the Fraud Report may be downloaded at go.2checkout.com/fraud-index.
2Checkout’s quarterly fraud data is gathered from a worldwide sample of approximately one million online transactions. 2Checkout identifies fraudulent activity in real-time using proprietary technology that combines direct observation, network-level intelligence, and 300+ system heuristics that evaluate every transaction to verify it.
The 2Checkout Fraud Index scores are calculated by first determining a ‘fraud rate’ – as derived by dividing the number of fraud incidents by the total number of transactions. The average fraud rate worldwide is set equal to 100, and all other fraud rates are normalized to this index. Therefore, a country with a Fraud Index of 200 is considered to be twice as risky as the average. The Fraud Index data is then cross-tabulated against buyer characteristics such as credit card
A worldwide leader in payment services, 2Checkout maximizes online sales conversions by giving global buyers localized payment options. Trusted by over 50,000 merchants, 2Checkout supports transactions in 196 countries through 8 payment methods, 26 currencies, and 15 languages, forming one of the leading processors of online transactions in the world. The service is simple to implement, including a pre-integrated payment gateway, a merchant account, PCI compliance, international fraud prevention, and easy integration for more than 100 of the most popular shopping carts.