News Feed Item

2016 e-commerce fraud attacks on pace to surpass 2015 totals

Miami, Fla., ranked as a top city for both shipping and billing e-commerce fraud

COSTA MESA, Calif., Sept. 22, 2016 /PRNewswire/ -- The question of whether we're in Kansas anymore is appropriate with the latest release of Experian® fraud attack data from across the United States. Eudora, Kan., is home to the highest e-commerce billing fraud ZIP Code. Accounting for 5 percent of the total billing fraud so far in 2016, the town is among the top 25 riskiest ZIP codes, illustrating that fraud is not confined to larger cities.


Download Experian's bi-annual 2016 Top 100 riskiest billing ZIP codes rankings

Experian analyzed millions of e-commerce transactions from the first six months of 2016 to identify the latest fraud attack rates for shipping and billing locations across the United States. Fraud attack rates are calculated using bad transactions in relation to the total number of transactions. Billing fraud rates are associated with the address of the purchaser, typically the fraud victims. Shipping fraud rates are associated with the address where purchased goods are sent.

The one-year anniversary of the EMV chip technology rollout for consumers and merchants in the United States is approaching. The rollout utilizes chip technology on credit cards to protect in-store payments making it harder to counterfeit cards, and helping eliminate in-store fraud. However, the 2016 e-commerce fraud attack rates appear to be at least 15 percent higher than last year's total. This suggests that card-not-present fraud is increasing as e-commerce fraud is often an indicator that other fraud activities have already happened — a credit card has been stolen, identity fraud has occurred or personal credentials have been compromised.

The increase in e-commerce fraud is not surprising as e-commerce sales in the U.S. during the second quarter of 2016 increased nearly 16 percent year-over-year (YoY) according to the U.S. Department of Commerce. This was the greatest YoY increase since Q3 2014. At the same time, the Federal Trade Commission stated earlier this year that credit card fraud complaints had the highest reported numbers in 10 years, with a 41 percent increase in 2015 versus 2014.

"Fraudsters continue to exploit new vulnerabilities, and perpetrate card-not-present fraud against businesses using stolen consumer identity and payment data," said Adam Fingersh, Experian general manager and senior vice president of Fraud and Identity Solutions. "This reinforces the need for aggressive fraud prevention strategies and adoption of open technology platforms to prepare for the latest emerging cyber security threats. Fraudsters have what they need to quickly capitalize on compromised data, so businesses need to be prepared."

According to Experian's rankings of top 100 riskiest billing ZIP codes, e-commerce fraud attack rates for the first half of 2016 show:

  • 44% of e-commerce billing fraud came from three states among the top 100 riskiest billing fraud ZIP codes - Florida, California and New York - based on the sum of fraud attacks.
  • Florida is the top-ranked state for billing fraud, with Miami home to 12 of the riskiest ZIP codes. New York ranked second, with Brooklyn home to six of the riskiest ZIP codes.
  • Houston, Texas, (77036) has the riskiest ZIP Code for billing fraud as ranked by fraud attack rate.
  • Eudora, Kan. (66025) has the next riskiest ZIP Code for billing fraud as ranked by fraud attack rate, followed by two ZIP codes in Miami (33192 and 33166) and one in Homer, Alaska (99603).
  • 52% of e-commerce shipping fraud came from three states among the top 100 riskiest shipping fraud zip codes - Florida, New York, and California - based on the sum of attacks.
  • Florida is home to 26 of the riskiest 100 shipping fraud ZIP codes, with 17 from Miami.
  • Eudora, Kan., has the overall riskiest shipping ZIP Code (66025) as ranked by fraud attack rate.
  • The next four riskiest shipping ZIP codes as ranked by fraud attack rate are located in Miami (33195, 33192 and 33116) and Nettleton, Miss. (38858).

Many of the higher-risk ZIP codes and cities are located near a large port-of-entry city or airport, making them ideal locations for reshipping fraudulent goods. This includes Miami, Houston, New York City, and Los Angeles, perhaps allowing criminals to move stolen goods more effectively. All those cities are ranked among the riskiest cities for both measures of fraud attacks.

Download the 2016 Experian top 100 fraud attack rate ZIP Code rankings.

About Experian 
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision-making. We also help people to check their credit report and credit score and protect against identity theft. In 2016, for the third year running, we were named one of the "World's Most Innovative Companies" by Forbes magazine.

We employ approximately 17,000 people in 37 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2016, was US$4.6 billion. To find out more about our company, please visit http://www.experianplc.com or watch our documentary, "Inside Experian."

Experian is a nonexclusive full-service provider licensee of the United States Postal Service®. The following trademarks are owned by the United States Postal Service®: ZIP and ZIP Code. The price for Experian's services is not established, controlled or approved by the United States Postal Service.

Experian and the Experian marks used herein are trademarks or registered trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the property of their respective owners.

Matt Tatham
Experian Public Relations
1 917 446 7227
[email protected]

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/2016-e-commerce-fraud-attacks-on-pace-to-surpass-2015-totals-300332501.html

SOURCE Experian

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
I’m going to cry tonight, long and hard. I’ll do so as I remember and mourn Jeremy Geelan. I knew Jeremy for almost 20 years, from the time he showed up one day at Cloud Expo’s headquarters in Bergen County, New Jersey, and went to work. The show wasn’t called Cloud Expo then, of course – it was still known as Java Edge, a pioneering event that grabbed developers, architects, and enterprise IT users alike for twice-yearly confabs. Jeremy didn’t have a job there, or even a job offer. He was s...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...