Over the past few years, there’s been a notable migration from in-person to e-commerce shopping. Coupled with the shift to EMV chip cards, which has significantly reduced card present fraud at the point of sale, the industry has seen a sharp uptick in card not present (CNP) fraud.
According to Insider Intelligence, domestic CNP fraud losses are projected to reach $8.75 billion this year, an increase of 11.3% over 2021. By 2024, CNP fraud is projected to top $10 billion and account for 74% of all fraudulent card transactions.
Co-op credit union client portfolio data also shows CNP as the highest reported category of fraud, at 79%. The top merchant classifications for CNP fraud volume include Digital Goods/Gaming (which includes Microsoft), Computer Software (think streaming services), Eating/Restaurants (including popular delivery apps like Uber Eats and Door Dash) and Money Transfers (such as Apple Cash).
Top 5 Scam Trends to Watch Now
As the holidays approach here are some of the fraud trends we’re watching at Co-op:
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