The U.S. Payments Forum released a new Market Snapshot, which includes new data about recent eCommerce fraud prevention trends, the company said in a press release.
Despite increased awareness and investment in fraud prevention, the impact card not present fraud continues to grow. Although the absolute number of data breaches declined year-over-year from 2019-2020, the total number of records stolen significantly increased.
“Accertify observed that while the overall number of data breaches were down last year, according to privacyrights.org, the total number of records breached were up 50-60%,” the release said. “Large contributors to these breaches were social engineering schemes such as phishing and smishing, often motivated by government stimulus checks and other financial targets.”
The reason for the increase is largely attributed to synthetic identity fraud. There is a lucrative market on the dark web for stolen personally identifying information, increasing opportunities for fraudsters. Companies increased fraud prevention measures and the use of eCommerce fraud prevention solutions, but so far continue to struggle.
“With synthetic identity fraud on the rise, the industry is looking to stronger authentication measures to improve identity validation at time of account opening and to techniques like EMV 3DS and tokenization to improve authentication and security during transactions,” the release said. “Artificial Intelligence has also seen increased interest for seamless security, as it can identify fraudulent online transactions based on predictive pattern matching.”