Holiday Cheer or Holiday Horror? Radial Releases its Annual Holiday Fraud Index Showing Retailers Risk Coordinated and Sustained Fraud Losses

Data scientists at Radial identify six trends to help retailers
combat fraud and convert more sales this holiday season

the leading omnichannel commerce technology and operations provider,
today released its Annual Holiday Fraud Index to inform the retail world
about the pervasive and escalating growth in fraud. Developed by
Radial’s data scientists in their Fraud Technology Lab, the 2016 Holiday
Fraud Index uses data from hundreds of clients and billions of data
elements to uncover EMV, cross-border, and digital gift card trends that
could put retailers’ bottom lines at risk.

“With more than 10 years in fraud management and billions of
transactional records to pull from, Radial is in a unique position to
leverage our expertise and data to identify high-risk factors for
retailers,” said Stefan Weitz, Chief Product and Strategy Officer at
Radial. “We’re heading into our second holiday season with more
retailers EMV ready, which means CNP fraud becomes a lot more attractive
to organized and tech savvy criminals. Combine that with the increased
prevalence of data breaches and retailers are faced with the daunting
challenge of approving as many orders as possible, while minimizing
fraud. Bottom line for most retailers if you are managing fraud
yourself, the Grinch will be stealing your holiday.”

As eCommerce continues to grow, so will the opportunities for fraudsters
to frustrate, steal and destroy. With more
than two billion records already stolen in 2016, hacks, leaks and data
breaches show no sign of slowing down.
Radial’s Annual Holiday Fraud
Index details six valuable key findings retailers should be aware of
this season and beyond:

1. CNP fraud garners the largest share of fraudulent activity with
fraud attack rates increasing in nearly every market segment.

  • Since EMV’s launch, Radial has seen on average a 30% increase in
    online fraud attacks across its client base with the steepest increase
    occurring in the Electronics, Entertainment and Jewelry market
    segments. Home and Sporting Goods are impacted the least, though still
    a target.

2. Some cross-border countries represent greater risk, while
others offer higher sales potential.

  • eCommerce attack rates provide insight into geographies that pose the
    greatest and least risk, along with the potential for higher sales.
    Venezuela has the highest cross-border eCommerce attack rate at
    17.04%, while the U.S. Virgin Islands has one of the lowest at 0.06%,
    as well as the highest order approval rate at 99.77%.

    China, Japan, and Korea account for nearly 50% of cross-border
    eCommerce sales in the Cosmetics and Home market segments. Korea and
    China account for more than 78% of sales among the top five
    cross-border countries during the holiday season.

3. Cross-border attack rates drop significantly on Cyber

  • Data shows that retailers can be approving up to 98.59% of
    cross-border eCommerce orders on Cyber Monday – a sales figure that
    surpassed $3.8 million for Radial clients last year. That’s not the
    only good news. Cross-border fraud attack rates dropped over 33% on
    Cyber Monday compared to the rest of the holiday season giving
    retailers an opportunity to tap into cross-border sales on one of the
    season’s busiest days.

    Despite this rosy picture, Radial,
    through its work with some of the world’s favorite brands,
    is finding that many retailers are still diagnosing too much
    cross-border fraud, and losing out on millions as a result.

4. Digital gift card fraud spikes after December 25.

  • Digital gift card fraud attacks are 10X more likely during the
    holidays compared to other delivery methods. That jumps to almost 25X
    more likely the week after Christmas. Even fraudsters take a break on
    Christmas Day, when attack rates hit an all-time seasonal low.

5. Digital gift card attack rates soar for some billing and
shipping domains and payment tenders during the holidays.

  • and Discover can be red flags for fraudulent gift card
    orders with attack rates hovering around 200% higher than their
    nearest competitor.

6. IP locations and credit card bank identification number
(BIN) carry different risk factors for digital gift card purchases.

  • Credit card BIN and IP country matter when accessing risk. Colombia‘s
    BIN and IP address shows an attack rate of more than 20% for digital
    gift card purchases. When Mexico is the BIN country, digital gift card
    attack rates exceed 27%.

For an in-depth analysis of holiday fraud risks, download Radial’s “Annual
Holiday Fraud Index
” and Infographic.

About Radial

Radial is the leader in omnichannel commerce technology and operations,
enabling brands and retailers to profitably exceed retail customer
expectations. Radial’s technical, powerful omnichannel solutions connect
supply and demand through efficient fulfillment and transportation
options, intelligent fraud detection, payments, and tax systems, and
personalized customer care services.

Hundreds of retailers and brands confidently partner with Radial to
simplify their post-click commerce and improve their customer
experiences. Radial brings flexibility and scalability to their supply
chains and optimizes how, when and where orders go from desire to
delivery. Learn how we work with you at


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Amy Christie