Feedzai Unveils State Of Payment Fraud and Surpasses $750 Billion Payment Transactions Globally
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San Mateo, Calif. – October 30, 2014 –Feedzai, a data science company that uses real-time, machine-based learning to analyze big data to make commerce safe, today announced it has surpassed analysis of data representing $750 billion in payment volume, and has found that the top date for card present fraud in 2013 was Black Friday.
In the analysis of its data, which represents over 17.5 billion transactions in both card present (CP) and card not present (CNP) environments, Feedzai also found the following:
- 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
- More Reasons to Hate Mondays: The highest rate of overall fraud occurs on Monday, and Sunday is the day that the fewest fraudulent transactions occ 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 fra 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.”
Feedzai Fraud Prevention That Learns™ software uses big data, including mobile and social data streams, to create deep learning profiles for each customer, merchant, location or POS device, product, with up to a three-year history of data behind it.
This data helps acquirers, issuers and retailers mitigate risk, guard every transaction and preserve the customer experience.
Feedzai’s analysis looked at data from its clients worldwide through 2013. To learn more about Feedzai, visit www.feedzai.com.
Feedzai is a data science company that uses real-time, machine-based learning to help payment providers, banks and retailers prevent fraud in omnichannel commerce. Feedzai is a global company, with US headquarters in San Mateo and is backed by SAP Ventures, big data investment firm Data Collective, and other international investors. Companies that rely on Feedzai include Coca-Cola, Logica, Vodafone, Ericsson, SIBs Payment Solutions, Horizon Wind Energy, and Servebase Credit Card Solutions. For additional information, visit https://feedzai.com.
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Press Contact For Feedzai: Jennifer Conway
[email protected] 978-463-0289