PORTLAND, Ore., Nov. 30, 2017 (GLOBE NEWSWIRE) -- iovation, the leading provider of device intelligence for authentication and fraud prevention, today released data collected from its retail and e-commerce subscribers from the 2017 holiday weekend (Nov 24-27th). For the first time in recent years, credit card fraud -- which remains the highest fraud type for online retailers -- has dropped from 59% in 2016 to 42% in 2017 over the course of the four day holiday weekend based on specific reports received by iovation’s online retail customers. This represents a 29% decrease from last year’s four day holiday weekend and demonstrates that online retailers are making strides in their ability to identify and prevent card-not-present (CNP) fraud which has been on the rise since brick and mortar retailers have increased their adoption of EMV card technologies.
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Retail Transactions: From HoliDAY to HoliWEEK
iovation’s data also showed a higher volume of that consumer transactions in the days leading up to Black Friday and Cyber Monday, indicating that while consumers are doing more of their holiday shopping online in general, online retailers are extending their promotional deals several days before and after Black Friday and Cyber Monday, lessening the relative impact of each of the major shopping days. iovation’s data also shows that 62% of consumer’s online retail transactions from Black Friday to Cyber Monday originated from mobile phones/tablets, compared to 55% from last year’s holiday season, continuing an increase in m-commerce during the holidays and year-over-year.
“We can infer a number of trends through the analysis of billions of e-commerce transactions processed through our FraudForce platform. Most notable among these is that online retailers who leverage device intelligence are making significant inroads when it comes to proactively preventing card-not-present fraud,” said Greg Pierson, CEO and co-founder for iovation. “This type of fraud not only cuts into their bottom line results, it can cause irreparable harm to their brand so this is a meaningful improvement.”
Consumer Behaviors: Password Complacency Still Reigns
iovation also conducted a survey of more than 1,000 consumers across four generations to better determine how knowledge of fraud affects online behavior. While 83% of respondents understand how to protect themselves online - using a credit card rather than a debit card for online purchases, monitoring credit scores regularly and shopping at well-known retailers - consumers across all demographic groups continue to exercise poor password hygiene.
On the topic of consumer attitudes towards online shopping in the wake of major security breaches that have exposed millions of consumers’ personal information, Pierson continued, “Attitudes towards online shopping shows that consumers are becoming better educated about how to protect themselves online. However, they remain largely complacent as it relates to their password hygiene, which is why we are seeing a steady rise in identity theft and account takeovers.”
While currently serving as consumers’ primary means of authentication, passwords frequently fail when it comes to both user experience and security. And despite these shortcomings, vulnerable passwords are firmly ensconced in today’s online experience. Of those surveyed, 60% of consumers say they are not changing their passwords regularly (less than every 6-12 months) and of greater concern, close to 70% of consumers say they use the same password across multiple sites, meaning that a hacker can easily take over multiple consumer accounts with just a single compromised credential.
A shift from static, password-based authentication to frictionless, multi-factor authentication (MFA) is crucial to combat today’s escalating threat environment. Multi-factor authentication combines the best of user experience and heightened security for businesses, using context to determine how trustworthy the user is, and as a result, the appropriate level of authentication required. Simply, dynamic authentication makes the right things easy and the wrong things more difficult, providing additional or less layers of authentication when needed. iovation’s user friendly, mobile multi-factor authentication solution, LaunchKey, allows both brands and consumers the ease in choosing which authentication options best fit their security needs.
Click here to view an infographic highlighting these and other key findings from iovation.
About iovation
Headquartered in Portland, OR, iovation was founded with a simple guiding mission: to make the Internet a safer place for people to conduct business. Since 2004, the company has been delivering against that goal, helping large brands protect their end users against online fraud and abuse that’s increasingly more common in today’s hacker culture. Using an intuitive and high availability product suite that focuses on authentication and fraud prevention, iovation identifies trustworthy customers through an advanced combination of device authentication and real-time risk evaluation. Armed with the world’s largest device-based fraud prevention database, iovation safeguards tens of millions of transactions against fraudulent activities each day. And the world’s foremost fraud experts regularly contribute their learnings as members of iovation’s Fraud Force Community, an exclusive virtual crime-fighting network.
Press Contact:
Robert Nachbar
Director of Brand & Communications
206-427-0389
robert.nachbar@iovation.com