iovation is the leader in device reputation technology. They work to prevent all types of fraud and abuse on the Internet, including account takeovers, which occurs when your existing bank or credit card accounts are infiltrated and money is siphoned out. iovation also helps prevent new account fraud, which refers to financial identity theft in which the victim’s personal identifying information and good credit standing are used to create new accounts, which are then used to obtain products and services. Stolen Social Security numbers are often used to commit new account fraud.
During this year’s record-breaking Black Friday and Cyber Monday, iovation documented a significant rise in fraudulent transactions, which included account takeover attempts.
Their comparison of the two hottest shopping days of this year vs. last year found:
- 400% increase in the rate of fraudulent transactions on Black Friday (up from 1% to 4%)
- 25% increase in the rate of fraudulent transactions on Cyber Monday (up from 3% to 4%)
- 15% greater transaction volume on Cyber Monday compared to Black Friday
- 4% mobile fraud rate on both Black Friday and Cyber Monday.
These statistics are compounded by the dramatic and impressive consumer spending numbers for these dates. Consumers must understand that their credit card numbers are fueling the rise in cyber fraud. Throughout the holiday season and beyond, it is imperative that cardholders check their statements carefully, matching them up against receipts to confirm that each charge was authorized.