2/28/13

7% of online transactions in Africa are fraudulent

Only 1% in North America are made by criminals, iovation finds.

Bill Siwicki , Managing Editor, Mobile Commerce

Africa had the highest online fraud rate in 2012 when compared to other continents, according to fraud prevention technology provider iovation Inc.

The vendor analyzed billions of online transactions processed through its ReputationManager 360 device reputation and fraud prevention service to identify geographic trends.

Following are the online fraud rates for the five continents that generated the most online fraud in 2012, with the countries with the highest percentages of fraud noted:

“While fraud origins are regionally diverse, these geographies were unified in the kinds of fraud cybercriminals attempted,” says Scott Waddell, chief technology officer at iovation. “The majority of fraud in 2012 involved credit card fraud, identity theft and account takeover attempts.”

Account takeover occurs when a criminal hacks his way into an account, such as a consumer’s account with a retailer that contains billing and shipping information, and then places fraudulent orders.

When examining the industries targeted by criminals, iovation found the following by continent:

More than 2,000 fraud managers worldwide use iovation’s database of 1.2 billion Internet devices and relationships between devices to determine the level of risk associated with an online transaction, the company says.

Topics:

Credit card fraud, e-commerce, e-payments and security, e-retail, Identity theft, Internet fraud, online fraud, online fraud rates

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