Authentication & Security

Of CNP Fraudsters, Hating Mondays, Stolen Milk and Laptops - Feedzai Analysis


Feedzai did an analysis of $750 billion worth of payment transactions to understand fraud trends. Feedzai's analysis looked at data from its clients worldwide through 2013 and I must say that its a brilliant set of information. The analysis represents 17.5 billion transactions in both card present (CP) and card not present (CNP) transactions. Some key highlights include:

  • CNP Fraudsters are Bigger Spenders: The average CNP fraudster spends about $900 per card in five days, while CP fraudsters take seven days to spend an average of $450.
  • CNP Fraud Spikes in November, CP Fraud Dominates Black Friday: In 2013, the 10 days with the most CNP fraud occurred in November. More than three times more CNP fraud occurs in November than in June (the month with the least CNP fraud). None of the top CNP fraud days in November were on Black Friday because they were busy with CP fraud. Shoppers—and fraudsters— flood brick-and-mortar retailers making Black Friday the day with the most CP fraud.
  • Hot Hours for Fraudulent Activity: The most CNP fraud occurs between 12-1 pm, while CP fraud is more likely to occur between 4-5 pm.
  • More Reasons to Hate Mondays: The highest rate of overall fraud occurs on Monday, and Sunday is the day that the fewest fraudulent transactions occur. The most CP fraud occurs on Saturday, 42% higher than on Sunday, and the most CNP fraud occurs on Monday, 92% higher than on Sunday.
  • Stolen Milk and Laptops: Grocery stores/supermarkets (25%) and home supply warehouse stores (8%) are top targets for CP fraud. Top merchant categories for CNP fraud include electronics stores (11%), discount stores (10.2%) and computers, peripherals and software (7.8%).

"As we approach the holiday season, we are bound to see more evidence in fraud, especially with CNP transactions, and it will likely be bigger this season than last," said Nuno Sebastiao, Chief Executive Officer of Feedzai. "Fraudsters are also quickly shifting behaviors and targets as shoppers change behaviors. We expect that we will continue to see more cross-channel fraud this season as shoppers look to save time by ordering online and picking up in-store."

Recently, Feedzai also featured in the LTP9 - Online Fraud & Authentication Leaderboard. LTP9 is an effort by Let's Talk Payments to highlight key players in important segments of payments and commerce. Feedzai made it to LTP9 as a relatively new market entrant offering advanced analytics based fraud technology. Using big data science and machine learning, its solutions help combat fraud and payment associated risks for each transaction. With positive industry reviews, growing clientele, FeedZai’s fraud prevention software protects over $85B in electronic payments per year for Global 2000 customers.


The LTP9 Canvas report for Online Fraud & Authentication is available for Pre-Orders to our Newsletter Subscribers at an Introductory price of $750.
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