Costa Mesa, Calif., Sept. 22, 2016 — 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 CodeTM. Accounting for 5 percent of the total billing fraud so far in 2016, the town is among the top 25 riskiest ZIPTM codes, illustrating that fraud is not confined to larger cities.
Download Experian’s bi-annual 2016 Top 100 riskiest billing ZIPTM 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:
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 Coderankings.
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, Braz
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.
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.
# # #