Online payments provider 2Checkout announced on Tuesday the release of its first quarterly fraud report to track global payment scams, which found most fraud is associated with the purchase of television services and apparel.
By category, which is based on a sample of approximately one million online payment transactions processed by 2Checkout, the report found that the highest fraud rates in the world involve cable, satellite and paid television, which saw a fraud rate four times the average.
Men’s and women’s apparel purchases saw the second highest number of fraud incidents. According to the report, transactions valued at more than $400 are associated with a fraud rate 35 percent higher than average.
The report said buyer billing address and IP address are strong indicators of potentially fraudulent activity. Countries that saw the highest rates of fraud include Indonesia, Pakistan and Romania. Indonesian buyers, according to the report, are 12 times more likely to commit fraud, and the country has more than 17 times as much fraudulent activity per buyer compared to average countries.
The lowest fraud rates are found in Nordic countries, including Denmark, Finland and Norway, and Belgium, which sees the lowest number of fraud attempts. Nations with the lowest fraudulent activity based on IP address include Mexico, Norway, Denmark, Costa Rica and Belgium.
In terms of currency, while the U.S. dollar is the most frequently targeted currency, along with the Japanese yen, it has average overall risk. The Russian ruble, however, experiences the least amount of fraud—82 percent less than other currencies.
Additionally, the report showed Discover cards were ranked among the cards with the highest amount of fraudulent activity, followed by Diners Club, American Express and Visa. MasterCard was the least likely of the major card issuers to experience fraudulent activity, behind PayPal and Acculynk.