Last year, we launched FIBR, the first Fraud Industry Benchmarking Resource of its kind. Powered by the Sift Global Data Network, the tool equips businesses with essential fraud data and insights, helping them understand how various fraud trends impact similar businesses.
The tool allows anyone to see average payment fraud attack rates, general chargeback rates, reported 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.
With FIBR, businesses can compare their fraud rates against Sift benchmarks, providing them with vital metrics for informed decision-making.
Introducing New Metrics: Fraudulent Payment Methods
Now, we’re releasing new data on FIBR, focusing on fraudulent payment methods. The fresh metrics reveal the frequency of fraudulent payment methods used across industries, as well as the fraud rates for common payment methods within the Sift Global Network. These insights are invaluable for companies when benchmarking performance against industry peers, setting order acceptance thresholds, and informing how risk teams should handle manual review.
Across the Sift Network, credit and debit cards account for the majority of fraudulent transactions at nearly 85%. Because they’re widely used by consumers, they can be compromised through various methods, such as skimming, phishing, data breaches, and online scams, despite the security measures in place. When it comes to payment methods that have the highest fraud rate across industries, points-based payments such as loyalty programs lead the way at 5.4%, likely due to lower security, ease of access, and user neglect.
Most common fraudulent payment methods across all industries:
- Credit/Debit: 84.8%
- Electronic Fund Transfer: 6.6%
- Digital Wallet: 3%
- Points: 3%
- Others: 2.6%
Fraud rates by payment method across all industries:
- Points: 5.4%
- Cryptocurrency: 2.7%
- Electronic Fund Transfer: 2.1%
- Gift Cards and Voucher: 1.9%
- Digital Wallet: 1.2%
- Credit/Debit: 1.1%
Every industry has its unique fraud patterns. In iGaming & Online Gambling, the fraudulent use of credit and debit cards is lower than the industry-wide average, at 64%, with electronic fund transfers (20.5%) and digital wallet payments (15.5%) accounting for more of the split.
Electronic fund transfers have the highest fraud rate among payment methods for iGaming & Online Gambling, ranking two positions higher than the all industry segment. This indicates that fraudsters may be trying to target businesses with high velocity transactions by leveraging electronic fund transfers to launder money and access quick cash.
Most common fraudulent payment methods across iGaming and Online Gambling:
- Credit/Debit: 64%
- Electronic Fund Transfer: 20.5%
- Digital Wallet: 15.5%
Fraud rates by payment method across iGaming and Online Gambling:
- Electronic Fund Transfer: 1.8%
- Credit/Debit: 1.4%
- Digital Wallet: .9%
- Gift Cards and Vouchers: .2%
- Cryptocurrency: .2%
Enhancing FIBR: A More Intuitive and Informative Experience
In addition to releasing new fraud metrics, we have reimagined FIBR to be more informative, intuitive, and transparent. The new design offers smoother navigation and provides clearer definitions for each metric, along with accessible tooltips to add context to data.
Our goal with FIBR is to break down the barriers to accessible fraud data for the industry. By providing fraud fighters with deeper visibility into the evolving risk landscape, FIBR delivers insights every business needs to protect their customers and their reputation in an increasingly complex digital ecosystem.
More Ways for Sifters to Interact with FIBR
Sift users have access to even more detailed insights within Sifters, our customer community. This customer-exclusive data features more in-depth metrics, 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.
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 fraud trends with peers, solving industry-wide challenges, and contributing to a growing global knowledge base.