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TransUnion Reports 4.6% Global Digital Fraud Rate During 2024 Holiday Shopping Season, Down From 6.0% in 2023

Quiver Quantitative ·  Dec 5 21:13

TransUnion reports a decline in suspected digital fraud during the recent holiday shopping period, benefiting ecommerce transactions.

Quiver AI Summary

TransUnion's analysis during the recent Cyber Five shopping period, from Thanksgiving to Cyber Monday, revealed a decline in suspected digital fraud in ecommerce transactions. Globally, 4.6% of transactions were identified as potential fraud, down from 6.0% in 2023, while in the U.S., the rate decreased from 5.8% to 4.2%. The study highlighted a significant reduction in fraud attempts, averaging 30.2% lower than in 2023. The highest fraud rate occurred on Thanksgiving Day, with 5.4% of U.S. attempts suspected as fraudulent. Despite the drop in fraud rates, a majority of U.S. consumers remain concerned about digital fraud, emphasizing the need for retailers to adopt robust fraud detection tools to protect both businesses and consumers.

Potential Positives

  • The global suspected Digital Fraud rate during the Thanksgiving to Cyber Monday period decreased from 6.0% in 2023 to 4.6% in 2024, indicating improved transaction security.
  • The rate of suspected Digital Fraud for U.S. consumers also fell from 5.8% in 2023 to 4.2% in 2024, showcasing progress in fraud prevention measures.
  • The average number of suspected Digital Fraud attempts globally was 30.2% lower than the same period in 2023, contributing to a safer online shopping environment.
  • The study reinforces the importance of tools like TransUnion's TruValidate, enhancing the company's reputation as a leader in fraud detection solutions.

Potential Negatives

  • The analysis revealed that a significant portion of consumers, 64%, expressed varying degrees of concern regarding digital fraud, indicating a potential trust issue that may affect the company's credibility in the market.
  • Despite a decrease in suspected fraud rates, the release suggests that the overall frequency of fraud concerns among consumers remains high, which may signal ongoing vulnerabilities in digital transaction security.
  • The press release emphasizes the need for retailers to implement better fraud detection tools, suggesting that existing measures might be insufficient, which could raise questions about TransUnion's current offerings and effectiveness in the market.

FAQ

What was the global suspected Digital Fraud rate during Cyber Five 2024?

The global suspected Digital Fraud rate during Cyber Five 2024 was 4.6%, down from 6.0% in 2023.

How does the U.S. suspected Digital Fraud rate compare year-over-year?

The U.S. suspected Digital Fraud rate decreased from 5.8% during Cyber Five 2023 to 4.2% in 2024.

Which day experienced the highest suspected Digital Fraud attempts?

Thanksgiving Day, November 28, had the highest suspected Digital Fraud attempts at 5.4% for U.S. transactions.

What concerns do consumers have regarding Digital Fraud this holiday season?

64% of U.S. consumers are moderately concerned about being victims of Digital Fraud during the holiday shopping season.

How can retailers combat Digital Fraud during the holiday season?

Retailers should implement holistic fraud solutions that can verify customer identity early in the transaction process.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.


$TRU Insider Trading Activity

$TRU insiders have traded $TRU stock on the open market 20 times in the past 6 months. Of those trades, 0 have been purchases and 20 have been sales.

Here's a breakdown of recent trading of $TRU stock by insiders over the last 6 months:

  • STEVEN M CHAOUKI (President, US Markets) has traded it 5 times. They made 0 purchases and 5 sales, selling 6,000 shares.
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$TRU Hedge Fund Activity

We have seen 293 institutional investors add shares of $TRU stock to their portfolio, and 223 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

  • FMR LLC added 3,427,199 shares (+307.7%) to their portfolio in Q3 2024
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Full Release



CHICAGO, Dec. 05, 2024 (GLOBE NEWSWIRE) -- As millions of consumers took advantage of Black Friday and Cyber Monday deals this past week, a new analysis from TransUnion (NYSE: TRU) found that 4.6% of attempted ecommerce transactions globally were suspected to be Digital Fraud from this Thanksgiving to Cyber Monday. Based on proprietary insights from TransUnion's global intelligence network, TransUnion found that the global suspected Digital Fraud rate was down from 6.0% during the same period in 2023. For attempted ecommerce transactions where the consumer was in the U.S., 4.2% were suspected of Digital Fraud during the 2024 holiday shopping period. That's down from 5.8% during the same period in 2023.



The analysis reviewed attempted ecommerce transactions from across the globe during the Cyber Five period, which consists of the days between November 28 (Thanksgiving Day) and December 2 (Cyber Monday), 2024.



The study determined that the average number of suspected Digital Fraud attempts on any given day during that holiday period globally was 30.2% lower than the same period in 2023 and 5.9% lower than during the rest of 2024 (Jan. 1, 2024, to Nov. 27, 2024).















































The Percentage of Suspected Ecommerce Fraud during the Cyber Five vs. Overall



Location



Cyber Five 2024 (Nov. 28





Dec. 2


)



All 2024 prior to Nov. 28



Cyber Five 2023 (Nov. 23 – 27)



All


2023 prior to Nov. 27



Cyber Five 2022 (Nov. 24 – 28)



All


2022 prior to Nov. 24



U.S.


4.2

%

7.1

%

5.8

%

6.6

%

3.1

%

5.5

%


Globally


4.6

%

7.5

%

6.0

%

12.5

%

4.3

%

6.8

%


Source: TransUnion TruValidate



"The late U.S. Thanksgiving holiday along with the general lengthening of the holiday shopping season were factors in the overall decline in transactions and the concurrent downtick in suspected fraud during the Cyber Five," said Steve Yin, global head of fraud at TransUnion. "For online retailers, this speaks to the need to maintain diligence year-round. For the remainder of this holiday shopping season, and beyond, online retailers must continue to implement tools that maintain a friction-right experience, wherein both business and consumer are protected without major disruption."



The greatest fraud disruptions globally during Cyber Five occurred on Thursday, November 28 with 5.3% of all attempted digital transactions on that day suspected to be Digital Fraud. The study also revealed the suspected Digital Fraud rate for each day in the holiday shopping period for attempted transactions where the consumer was in the U.S. during the transaction. Similar to global data, the suspected Digital Fraud attempt rate was the highest on Thanksgiving Day, Thursday, November 28 during the holiday shopping period in the U.S.
















































The Suspected Digital Fraud Rate Varies for Each Day of the Holiday Shopping Weekend



Day



U.S.



Globally



Thursday, Nov. 28

th




5.4



%



5.3



%



Friday, Nov. 29

th




3.7



%



4.5



%



Saturday, Nov. 30

th




3.7



%



4.2



%



Sunday, Dec. 1

st




5.2



%



4.6



%



Monday, Dec. 2

nd




3.6



%



4.5



%




Source: TransUnion TruValidate



As part of this analysis, TransUnion also determined the top signals indicating risk of fraudulent ecommerce transactions during the holiday shopping season globally. This year, unusually high transaction volume from a single device and devices being newly associated with an account were among the leading indicators for potential fraud attempts.





Many Holiday Shoppers Remain Concerned About Digital Fraud




The decrease in suspected Digital Fraud came as a majority of U.S. consumers indicated they were at least moderately concerned about being victimized by Digital Fraud during this holiday shopping season. TransUnion's

Q4 2024 US Consumer Pulse Study

found that 64% of survey respondents indicated that they were extremely, very or moderately concerned about digital fraud during this busy shopping period.



"The winter holidays are always hugely impactful to retailers' bottom lines, and our recent survey indicates that consumers may be particularly eager to buy this holiday shopping season," said Yin. "It's as important as ever for retailers to equip themselves with the tools they need to detect fraud early. These tools can help minimize fraudulent transactions while at the same time protecting legitimate transactions. Retailers should seek to implement holistic fraud solutions that can verify customer identity and authenticity as early as possible during a transaction."



TransUnion came to its conclusions about Digital Fraud based on intelligence from its identity and fraud product suite that helps secure trust across channels and delivers efficient consumer experiences –

TransUnion TruValidate

. The rate or percentage of suspected Digital Fraud attempts reflects those which TransUnion customers determined met one of the following conditions: 1) denial in real time due to fraudulent indicators, 2) denial in real time for corporate policy violations, 3) fraudulent upon customer investigation, or 4) a corporate policy violation upon customer investigation — compared to all transactions assessed. The country and regional analyses examined transactions in which the consumer or suspected fraudster was located in a select country and region when conducting a transaction. Global statistics represent every country worldwide.



To find out how this data varies by select countries and more, TransUnion's holiday fraud trends can be

found here.



Consumers interested in obtaining their TransUnion credit report, credit score, and accessing additional credit planning tools can

click here

. Learn more about how TransUnion



helps individuals and families protect against identity theft

here


.




About TransUnion (NYSE: TRU)



TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.






















Contact


Dave Blumberg


TransUnion


E-mail



david.blumberg@transunion.com



Telephone


312-972-6646


Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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