New TransUnion Analysis Finds More Than 4% of U.S. Attempted Ecommerce Transactions Between Thanksgiving and Cyber Monday Suspected to be Fraudulent
TransUnion analyzes early holiday ecommerce fraud attempt rates
As millions of consumers took advantage of Black Friday and Cyber Monday deals this past week, a new analysis from TransUnion found that 4.6% of attempted ecommerce transactions globally were suspected to be Digital Fraud from this Thanksgiving to Cyber Monday. 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).
Key Findings from the Analysis
The Percentage of Suspected Ecommerce Fraud during the Cyber Five vs. Overall
| 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 Suspected Digital Fraud Rate Varies for Each Day of the Holiday Shopping Weekend
| The Suspected Digital Fraud Rate Varies for Each Day of the Holiday Shopping Weekend | ||||
| Day | U.S. | Globally | ||
| Thursday, Nov. 28th | 5.4% | 5.3% | ||
| Friday, Nov. 29th | 3.7% | 4.5% | ||
| Saturday, Nov. 30th | 3.7% | 4.2% | ||
| Sunday, Dec. 1st | 5.2% | 4.6% | ||
| Monday, Dec. 2nd | 3.6% | 4.5% | ||
Source: TransUnion TruValidate
Implications and Recommendations
TransUnion’s analysis highlighted the importance of maintaining diligence year-round to combat digital fraud in ecommerce transactions. Retailers are advised to implement tools that ensure a friction-right experience for both businesses and consumers, protecting against fraud without causing major disruptions.
As part of this analysis, TransUnion identified top signals indicating the risk of fraudulent ecommerce transactions during the holiday shopping season, such as unusually high transaction volumes from a single device and devices newly associated with an account.
Consumer Concerns and Protection
Despite the decrease in suspected digital fraud, a significant number of U.S. consumers remain concerned about falling victim to fraud during the holiday shopping season. Retailers are urged to equip themselves with tools to detect fraud early and implement holistic fraud solutions that verify customer identity and authenticity as early as possible during transactions.
TransUnion’s insights were derived from its identity and fraud product suite, TransUnion TruValidate, which helps secure trust across channels and deliver efficient consumer experiences.
FAQs
1. What is the suspected rate of digital fraud during the Cyber Five period?
The suspected rate of digital fraud during the Cyber Five period was 4.6% globally and 4.2% for ecommerce transactions in the U.S.
2. Which day saw the highest percentage of suspected digital fraud during the holiday shopping period?
Thursday, November 28 had the highest percentage of suspected digital fraud globally, with 5.3% of attempted transactions being flagged.
3. What are some indicators of potential fraudulent ecommerce transactions?
Unusually high transaction volume from a single device and devices being newly associated with an account were identified as leading indicators for potential fraud attempts.
4. How concerned are U.S. consumers about falling victim to digital fraud during the holiday shopping season?
64% of U.S. consumers indicated that they were extremely, very, or moderately concerned about digital fraud during the holiday shopping season.
5. What recommendations are provided to retailers to combat digital fraud?
Retailers are advised to implement tools that maintain a friction-right experience, verify customer identity early in transactions, and detect fraudulent activities while protecting legitimate transactions.
