Suspected Digital Holiday Shopping Fraud in U.S. Increases 127% Compared to Rest of 2022
TransUnion analyzed early holiday e-commerce fraud attempts, revealing a global increase of 82% in suspected digital fraud between Thanksgiving and Cyber Monday compared to the rest of the year. In the U.S., this spike was 127%. The analysis indicated that 15% of all global e-commerce transactions during this period were potentially fraudulent, with 18% for U.S. transactions. Black Friday and Cyber Monday saw the highest rates of fraudulent transactions, at 26% and 24%, respectively. Nearly 54% of American consumers expressed concern over online fraud this holiday season, up 17% from the previous year.
- Increased demand for fraud detection solutions among online retailers.
- Heightened consumer awareness regarding online fraud could lead to increased investments in security.
- Significant rise in e-commerce fraud could deter consumer spending.
- Potential negative perception of online shopping among consumers due to heightened fraud concerns.
TransUnion analyzes early holiday e-commerce fraud attempt rates
CHICAGO, Dec. 01, 2022 (GLOBE NEWSWIRE) -- TransUnion (NYSE: TRU) released new findings today around global e-commerce fraud that occurred during the start of the 2022 holiday shopping season. The analysis found that the average number of suspected digital fraud attempts on any given day between Thanksgiving and Cyber Monday (Thursday, Nov. 24, and Monday, Nov. 28) was
These findings are based on intelligence from billions of transactions contained in TransUnion’s TruValidate™ fraud analytics solution suite. The analysis determined
The study also revealed the share of suspected digital fraud attempts for each individual day in the holiday shopping period for transactions in the U.S. The greatest propensity of risky transactions occurred during Black Friday and Cyber Monday.
Breakdown of Risky Transactions During Holiday Period
| Day | Percentage of All Holiday Period Risky Transactions by Day (Nov. 24-28) | |
| Friday, Nov. 25th (Black Friday) | 26 | % |
| Monday, Nov. 28th (Cyber Monday) | 24 | % |
| Saturday, Nov. 26th | 22 | % |
| Sunday, Nov. 27th | 16 | % |
| Thursday, Nov. 24th (Thanksgiving) | 12 | % |
“Fraudulent activity tends to be particularly prevalent in online retail during the holiday shopping season,” said Shai Cohen, senior vice president and head of global fraud solutions at TransUnion. “Despite the fact that consumers have begun returning in larger numbers to in-person shopping in the post-pandemic era, online retail continues to be the preferred means of holiday shopping for many. It’s important that online retailers ensure consumer security and privacy protections, which is important to consumers, but in a way which ensures a seamless shopping experience that minimizes unnecessary friction.”
TransUnion also revealed in the analysis the top types of fraudulent e-commerce transactions during the holiday shopping season. This year, promotion abuse and account takeover were the leading fraud attempt types.
“Online retailers must equip themselves with the proper tools to detect fraud at the first warning sign, and without inhibiting the consumer journey,” said Cecilia Seiden, vice president of the retail business at TransUnion. “It’s more important than ever that these online retailers implement holistic fraud solutions that are able to verify customer identity and authenticity at the very beginning of a transaction without resulting in false positives that may cost them legitimate transactions.”
Consumers express more concern this holiday season
The increase of suspected digital fraud during the traditional busiest days of the holiday shopping season occurred as consumers express concern about being victimized. TransUnion’s 2022 Consumer Holiday Shopping Survey conducted in August 2022 found that
TransUnion monitors digital fraud attempts reported by businesses in varied industries such as gambling, gaming, financial services, healthcare, insurance, retail, and travel and leisure, among others. The conclusions are based on intelligence from billions of transactions and more than 40,000 websites and apps contained in TransUnion’s flagship identity insights, digital insights, omnichannel authentication, and fraud analytics solution suite – TruValidate™.
Additional information on TransUnion’s 2022 holiday fraud trends can be found here.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good®.
A leading presence in more than 30 countries across five continents, TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people.
http://www.transunion.com/business
| Contact | Dave Blumberg |
| TransUnion | |
| dblumberg@transunion.com | |
| Telephone | 312-972-6646 |
1 The percent of suspected digital fraud attempts are those that TruValidate customers either denied or reviewed due to fraudulent indicators compared to all transactions it assessed for fraud.
FAQ
What was the percentage increase in e-commerce fraud attempts from Thanksgiving to Cyber Monday 2022 for TransUnion?
How much of the e-commerce transactions during the 2022 holiday season were suspected to be fraudulent according to TransUnion?
On which days did TransUnion report the highest fraud attempts during the 2022 holiday shopping season?
What percentage of American consumers were concerned about online fraud in 2022 according to TransUnion?
What types of fraud were the most prevalent during the 2022 holiday season according to TransUnion?
