FRAUD-FIGHTING TRENDS 2016What's top-of-mind for the folks on the front lines of fraud detection and prevention? We surveyed hundreds of

companies currently combating online fraud to find out.

As e-commerce sales – projected to reach $3.5 trillion

by 2020 – continue to thrive, an increase in fraud is an

unwelcome side effect. And with the October 2015

switch to EMV, which made physical credit cards harder

to counterfeit, more fraudsters are turning online.

expect to see a larger volume of fraud attempts in 2016

BUSINESSES ARE BRACING THEMSELVES:

FRAUD’S EVER-EXPANDING IMPACT

68%

plan to invest more in fraud prevention62%

don’t expect to see more fraud this year6%ONLY

TOP 8 TYPES OF FRAUDWhile the familiar scourge of criminals buying digital and physical goods with stolen credit card details is the most

common fraud our respondents deal with, other types of fraud also abound. Some businesses – like marketplaces or

social networks – even deal with fraud on multiple fronts.

Stolen credit cards Fake accounts, account takeover, account abuse

Card testing Friendly fraud

Promo, referral, coupon

abuse

Money laundering Fake goods and listings Resellers and Reshippers

GROWING THE TOP LINE IS A TOP CONCERNOrganizationally, risk and fraud departments are often perceived in terms of the loss they prevent. However, among the

businesses we surveyed, false positives, lost sales, and brand damage as a result of poor customer experience were

cited as concerns just as frequently – and sometimes even more so.

Concerned about detecting fraud without turning away good customers

76%Worried about losing revenue

to fraud.

69%

Concerned about expanding into new markets without increasing risk

38%

50%

Anxious about introducing new products or services without increasing risk

Preoccupied by meeting customers’ high expectations for user experience

32%

Growing business without growing risk

Lost sales vs. lost revenue

Fast, frictionless...and fraud-free?

Efficiency&

Automation

2016 RESOLUTION? DO MORE WITH LESSA theme that came through strongly among respondents was the desire to maximize the resources they already

have—even as they prepare to tackle increased fraud attempts this year.

59%are concerned about spending too much time and money on manual review

10%Are increasing their budget for fighting fraud (despite plans to invest more...)

52%plan to adopt new tools or change the tools they’re using

16%Plan to hire more people to focus on fraud

62%will focus on creating more efficient processes

80%have plans to automate more fraud decisions

In November 2015, Sift Science surveyed 180 businesses who are combating online fraud about their experiences, goals, and concerns. © Sift Science 2016

78% 52% 33% 30%

24% 18% 15% 15%

Percentage of respondents facing each type of fraud:

ONLYONLY