Surprising consumer behavior on the use of debit and credit cards has been observed in the recent past
Feedzai has found that card-not-present (CNP) transactions have increased by 30%. This can be associated with lockdowns and social distancing as a result of COVID-19.
At the same time, the use of card-present transactions decreased by 22% as compared to Q1. This was caused by the steep decline observed in CP transactions in April. By June, however, CP transactions had recovered. This is despite the worldwide social distancing protocols.
The report also found that card cloning fraud-related cases increased by 34%. This is the most common type of fraud in the e-commerce and financial services industry.
Contrary to what may be expected, the amount of money processed in holiday season shopping in May 2020 was higher than that in 2019. The increase in dollar amount was sustained in the early fall and summer holiday seasons.
With COVID-19 still lingering, Black Friday was canceled this year. Most popular stores such as Target, Walmart, and Best Buy are limiting in-store crowds. Consumers are also opting for Cyber Monday where they can shop online.
We’ve reported that the United Kingdom Financial Conduct Authority is cautioning against fraudsters who claim to be from Blockchain.com.