Markets

Worlwide impacts
of friendly fraud

OUR SOLUTION

Enygma’s Adaptative rules engine and advanced self-learning models provide a holistic view of customers and identify at-risk activity to reduce chargebacks and false positives.

volume of sales failures in 2019

€108Bn

of companies have been victims of fraud in the past 2 years

47%

In lost turnover every year because of 3D Secure

€108Bn

reduce

chargebacks

& false

positives

Automatic Chargebacks

Friendly chargebacks allow banks to forcibly take the funds from the merchant’s account and can even lead to the merchant’s account being terminated

Time Consuming

If the processing costs, the chargeback amount and the interchange fee were not enough, the whole chargeback
process is extremely time consuming and labor intensive

Lost Goods

If the end-user contests the charges and says the goods were never received, merchants could also lose out on the value of the sold goods

Double Trouble

If a refund is not dealt with quickly enough, it can lead the merchant to receive a double chargeback, increasing his chances to appear in chargeback monitoring programs

Worldwide

Overall, more than a third of 3DS2 transactions fail to go through, for reasons ranging from transaction failure, customer abandonment or authorization decline. If we take 2019’s sales volume, these failures would represent €108.1 billion in lost sales.
- 47%
  of companies surveyed said they had experienced fraud in the past 2 years.
- 39%
  of reported frauds were committed by external perpetrators.
- 42%
  Companies with set fraud prevention reduced their fraud attack expenses by 42% in 2020.
- 20%
  of reported frauds were carried out by internal and external perpetrators colluding.
- 37%
  of reported frauds were committed by internal perpetrators.
Worldwide
USA

Overall, more than a third of 3DS2 transactions fail to go through, for reasons ranging from transaction failure, customer abandonment or authorization decline. If we take 2019’s sales volume, these failures would represent €108.1 billion in lost sales.
- 77%
  of companies report some type of fraud during digital payment.
- 53%
  of customers report fraud during digital payment.
- 27%
  of online sales end up being fraudulent compared to 18% in 2018.
- 60%
  of US organizations have a fraud policy put in place.
USA
Europe

Overall, more than a third of 3DS2 transactions fail to go through, for reasons ranging from transaction failure, customer abandonment or authorization decline. If we take 2019’s sales volume, these failures would represent €108.1 billion in lost sales.
- €1.4Bn
  of the total card fraud accounted for by CNP payments in 2018.
- €1.8Bn
  Total value of fraudulent transactions using cards within SEPA in 2018.
- 17.7%
  increase in CNP fraud from 2017 to 2018.
- 25.1%
  Card fraud volume increased by 25% in 2018.
Europe
United Kingdom

Overall, more than a third of 3DS2 transactions fail to go through, for reasons ranging from transaction failure, customer abandonment or authorization decline. If we take 2019’s sales volume, these failures would represent €108.1 billion in lost sales.
- 76%
  In 2019, more than 76% of card fraud losses were due to CNP.
United Kingdom
Latin America

Overall, more than a third of 3DS2 transactions fail to go through, for reasons ranging from transaction failure, customer abandonment or authorization decline. If we take 2019’s sales volume, these failures would represent €108.1 billion in lost sales.
- 20%
  of new user accounts created in LATAM are fraudulent.
- 1/3
  in retail ecommerce, 1/3 of new accounts created in LATAM are fraudulent.
- 19%
  e-commerce sales in LATAM are expected to grow 19% annually over the next few years.
- €1Bn
  recent reports state Brazil’s losses from online fraud at nearly €1 billion.
Latin America
Asia-Pacific

Overall, more than a third of 3DS2 transactions fail to go through, for reasons ranging from transaction failure, customer abandonment or authorization decline. If we take 2019’s sales volume, these failures would represent €108.1 billion in lost sales.
- 78%
  of banks in the APAC region agree that the introduction of real-time payments increased fraud losses.
- 67%
  of businesses report an increased concern for fraud losses.
- 50%
  growth of online fraud losses in 2019.
Asia-Pacific