{"id":468827,"date":"2021-03-31T11:33:21","date_gmt":"2021-03-31T15:33:21","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=468827"},"modified":"2021-03-31T11:33:21","modified_gmt":"2021-03-31T15:33:21","slug":"report-value-of-attempted-fraudulent-purchases-skyrocketed-69-in-2020","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/report-value-of-attempted-fraudulent-purchases-skyrocketed-69-in-2020\/","title":{"rendered":"Report: Value of Attempted Fraudulent Purchases Skyrocketed 69% in 2020"},"content":{"rendered":"

\nSift\u2019s Q1 2021 Digital Trust & Safety Index Highlights Fraudsters\u2019 Newest Techniques and Targets, Exposes Sophisticated Fraud Ring Exploiting Guest Checkout Options
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SAN FRANCISCO, March 31, 2021 (GLOBE NEWSWIRE) — Sift<\/u><\/a>, the leader in Digital Trust & Safety, today released its Q1 2020 Digital Trust & Safety Index report, which revealed that the average value of fraudulent purchase attempts increased 69% in 2020. Sift also saw several business categories hit by both major increases in attempted fraud rates and<\/em> increases in the value of those fraudulent purchases, with Lodging Merchants, Omnichannel Retailers, Digital Wallets, and Professional Marketplace companies becoming targets for online theft amid the COVID-19 pandemic.<\/p>\n

Sift\u2019s Data Science team also uncovered a sophisticated fraud ring, dubbed Cart Crasher by Sift, that leveraged guest checkout options on donation sites to attempt to launder stolen payment information. The group employed automated scripts to launch thousands of attacks on these sites through guest checkout options, which allow buyers to forgo the account creation process and only require a user\u2019s email address before the user enters their payment information. The group\u2019s innovative tactics demonstrate the ever-evolving nature of the Fraud Economy\u2014a network of active cybercriminals with access to everything they need to exploit online businesses.<\/p>\n

Specifically, Cart Crasher\u2019s scheme, which was shut down across Sift\u2019s global network, operated as follows:<\/p>\n

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  1. Fraudsters set up recipient accounts on donation sites<\/li>\n
  2. Fraudsters create and post fake causes with which to receive donations<\/li>\n
  3. Fraudsters use stolen credit cards and fake usernames\/emails in guest checkout<\/strong> by the thousands (via automated scripts) to donate funds to their own fabricated causes<\/li>\n
  4. \u201cDonations\u201d are made in increments of approximately $5, allowing Cart Crasher to test stolen payment accounts to determine if they\u2019re valid for use elsewhere\u2014and paying themselves in the process<\/li>\n<\/ol>\n

    \n Characteristics of Cyber-crooks<\/strong>\n <\/p>\n

    The Q1 2021 Digital Trust & Safety Index also found that while credit card transactions make up the majority of e-commerce payments<\/u><\/a>, the \u201cfraudiest\u201d payment methods were digitally native ones: online gift cards, store credit, cryptocurrencies, and in-app purchases. Similarly, the three most popular items sought by fraudsters across Sift\u2019s global network were all digital goods: video game virtual currency, cryptocurrency, and site credits.<\/p>\n

    Other findings in the report include:<\/p>\n