The US e-commerce market faces a fresh set of challenges. More retailers are completing the switch to EMV point of sale terminals so fraudsters are increasingly turning to CNP fraud, just as they have in other post-EMV markets. Automated botnet fraud also increased dramatically during 2015, now accounting for more than 80% of e-commerce fraud attacks. Sophisticated fraud is on the rise too, as thieves develop new ways to leverage identity theft and malware.
Brazil is Latin America’s dominant e-commerce market. B2C e-commerce sales are projected to top $40 billion this year, more than half the total for the region. Brazilian consumers are comfortable shopping online from domestic and cross-border merchants and overwhelmingly prefer to pay by credit card. The country has Latin America’s highest card penetration rate.
With those upsides come hazards. One third of Brazilian cardholders have experienced fraud in the past five years. Unprotected Wi-Fi networks are common, and many consumers use them to make purchases without realizing the potential consequences.
Merchants that succeed in Brazil’s complex market use all the tools at their disposal to counteract fraud. This includes algorithms and machine learning, human intelligence, customer contact and verification, and comprehensive dataset analysis. Using all of these tools helps businesses to spot nascent fraud trends and predict new fraud attempts instead of only reacting to a never-ending stream of ever-changing fraud tactics.
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