In retail, the security of e-commerce transactions has been a constant concern due to the persistent threat of fraud. The Fraud Map 2023, published by ClearSale, gathered the main data about fraud attempts in online purchases in Brazil over the past year, including the most sought-after product categories by fraudsters, target audience, and most impacted payment methods.
Throughout the past year, over 3.7 million fraud attempts were recorded, representing a share of 1.4% of all orders placed on e-commerce websites. Concerning the audience, men tend to be the main target, with the value of attempts reaching 1.1 billion reais, considering the average purchase ticket value of R$1,042.09. People up to 25 years old are also the most affected compared to other age groups, accounting for 1.9% of fraud attempts.
The report also indicates that the movement has impacted the retailers’ sales performance: the average ticket of fraud attempts in 2023, at R$925.44, was twice as high as the average ticket of legitimate orders. Therefore, frauds impact the most relevant transactions in retail.
The first edition of the study commissioned by Pagaleve – a fintech that offers the Pix Parcelado payment method – and conducted by the consulting firm GMattos, shows that in March 2024, the average fraud management cost for a merchant represents approximately 1.9% of their revenue, including costs of chargebacks and anti-fraud tools. Thus, payment methods that reduce risk become even more relevant for the merchant.
Payment methods against fraud
The Fraud Map indicated that, among the most used means of payment in scam attempts in 2023, credit cards appear in second place, totaling 3.4 million attempts, equivalent to 3.4 billion reais; behind only bank billets, with 121.7 million fraud attempts, reaching a value of 13.1 million reais.
Commemorative dates usually bring an increase in fraud attempts. On Mother’s Day this year, for example, Clearsale data indicates that fraud attempts represented about R$ 92 million, 4.1% higher than the previous year.
“It is understandable that the use of credit cards is commonly used for installment payments given that it is a widely spread payment method among Brazilians and traditional. However, it is important to mention that there is already an installment method that does not require a credit card: Pix Installments. The payment method saves the merchant costs related to fraud while providing an additional payment method allowing more consumers to shop on the retailer’s e-commerce site. ” explains Guilherme Romão, Chief Risk Officer at Pagaleve. “In addition, Pix Installment companies like Pagaleve bear any fraud-related risk and cost,” Romão adds.
Pix Installments represent a form of inclusion for consumers who are not fully served by credit cards – thus contributing to expanding the offer and increasing conversion rates for merchants.
“Just as you can hardly find online stores without credit card payment available today, we believe that, in the near future, those merchants who do not join Pix Installment will be left behind. The trend is for this payment method to grow even further in the coming years and consolidate itself as one of the most used payment methods in our country,” concludes Guilherme.
