Visa report says spike in suspected fraud attempts on Black Friday
Visa blocked 280% more suspected fraud attempts on Black Friday in the UK this year than last year, and 140% more in Europe.
The company said in a press release emailed to PYMNTS on Thursday (Dec. 4) that it blocked a 63% increase in suspected fraud in the UK and a 40% increase in Europe compared to last Friday (Nov. 21).
“Black Friday remains a prime time for retailers, especially online shopping,” David Capezza, interim chief risk officer at Visa Europe, said in a press release. “However, as long as there is money to spend, fraudsters will always find a way to take advantage – which is why Visa's network never takes a day off.”
PYMNTS reported Friday (Nov. 28) that holiday spending trends are increasing the risk of fraud, as the combination of higher digital spending and heightened price sensitivity is ideal for scammers.
In September, it was reported that with the rise of artificial intelligence, the detection of fraud has become more difficult, and the EU's annual online fraud losses are close to 5 billion US dollars.
According to “The Impact of Financial Fraud on Consumer Finances and Banking Habits,” a collaboration between PYMNTS Intelligence and Featurespace, three in 10 consumers or a family member in the U.S. lost money to a scam in the past five years.
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According to a holiday threat report released Friday, Visa identified five types of scams that are common during the holidays.
These include fake shopping websites that impersonate well-known stores and steal shoppers' card information, package delivery scams that send fake “delivery problem” text messages to steal recipient information, “extra vacation cash” job scams that offer fake job opportunities, travel scams that target travelers with fake travel websites and phishing emails, and holiday charity scams that seek donations from fake charities, the report said.
Over the past five years, Visa has invested $12 billion in technology and infrastructure, including cybersecurity and fraud prevention, according to a press release.
The company launched its “Visa Fraud Disruption” practice about a year ago. Since then, the team has uncovered more than $260 million in fraud attempts in Europe and more than $1 billion in fraud attempts globally, according to an Oct. 7 blog post. It also worked with customers and law enforcement to dismantle more than 25,000 fraudulent merchants.
Visa also enhanced its Visa Integrity Risk Program, which helps the company's banking customers detect fraudulent merchant practices, according to the post.
“Visa continues to invest in technology, our pool of experts, and our global network to enable us to identify fraud early—no matter where it originates or who it targets—and work closely with our partners and customers to act quickly to stop them,” Capezza wrote in the post.
