Creating a good consumer experience is crucial for revenue growth. Not prioritizing secure and streamlined experiences can cost organizations 6.7% of their revenue and put $3.1 trillion in annual global consumer spending in jeopardy.
The key to better consumer experiences is in the data. Having access to new insights provides deeper visibility into the digital risk landscape, and further informs risk decisioning goals to ultimately improve interactions with trusted users. That’s why we developed our Fraud Industry Benchmarking Resource (FIBR), the definitive fraud benchmarking resource powered by the Sift Global Data Network.
We initially launched FIBR last year to equip businesses with fraud data and insights to inform risk decisioning goals and analyze how various fraud trends impact different industries. The tool allows anyone to see average payment fraud attack rates, fraudulent chargeback rates, and manual review rates across industries, regions, and timeframes. Since then, we’ve expanded FIBR to include account takeover and two-factor authentication trend data.
Now, we’re giving our valued customers exclusive access to even more expanded FIBR data within Sifters, our community for Sift customers. This customer-exclusive resource reveals detailed insights, including median order amount and fraudulent order amount trends by industry, plus chargeback reasons by industry. Sift customers can leverage this powerful data to gain deeper visibility into the digital risk landscape and make more informed risk decisions to improve the consumer experience.
Unlocking New Data and Benefits
The expanded FIBR data for Sift customers provides enhanced fraud detection, improved benchmarking, and actionable insights, including:
Median Order Amount
Customers can compare their own median order amounts, including legitimate and fraudulent orders, with industry trends to gauge their performance relative to competitors. This helps identify whether their figures are within a normal range, or if there are anomalies that need attention. For example, a sudden non-seasonal spike might suggest fraudulent activity.
Median Fraudulent Order Amount
Evaluating the median fraudulent order amount can help fine-tune fraud detection strategies. By understanding industry trends, customers can better detect and prioritize potential fraud, allocate resources more effectively for fraud prevention, and develop strategies tailored to the specific financial impact of fraudulent activities. If a customer is seeing significantly higher value fraudulent orders than the industry average, they might need to adjust their risk thresholds. Comparing data with industry norms can help customers better understand the risk landscape they operate in and appropriately allocate resources to manage and mitigate fraud risks.
Chargeback Reasons
Analyzing reported chargeback reasons allow customers to address underlying problems, such as improving product descriptions, shipping processes, or customer services concerns. Customers can address root causes of chargeback issues and proactively resolve common ones to build trust and loyalty among customers and drive satisfaction. Understanding industry trends in chargeback reasons also helps customers implement targeted measures to reduce chargeback rates. Since chargebacks come with financial costs, reducing this can lead to significant cost savings.
A Sneak Peek at the Top Insights From FIBR
The new FIBR data in Sifters reveals some compelling insights across various industries:
- Cryptocurrency: In the crypto industry, median order amounts saw a significant increase in Q1 2024, yet median fraudulent order amounts remained flat.
- Food and delivery: In the food and delivery market, the median total and fraudulent order amounts are almost identical, indicating that order value may be a less effective signal for identifying fraud.
- Digital goods and services: For digital goods and services, there’s been a steady increase in fraudulent order value over the last year, highlighting the need for enhanced fraud prevention measures in this space.
More About the Sifters Customer Community
Sifters is open to all Sift users, offering access to Sift documentation, education, and the world’s best network of digital risk professionals. Sifters serves as a centralized hub for sharing industry insights and trends, solving cross-market challenges, and contributing to a growing global knowledge base. Community members also benefit from the diverse set of perspectives and experiences represented across Sifters, and have the opportunity to make smarter business decisions based on both peer and product insights.
Explore the expanded data in Sifters and leverage it to strengthen your fraud prevention strategies, and be sure to stay tuned for future updates of FIBR.
For those of you who aren’t Sift customers, you can still interact with our public FIBR data.