In retail, the security of e-commerce transactions has been a constant concern due to the persistent threat of fraud. The 2023 Fraud Map, published by ClearSale, has compiled the main data on attempted scams in online purchases in Brazil over the past year, including the product categories most targeted by fraudsters, the target demographics, and the most affected payment methods.
Here's the English translation: Throughout the past year, over 3.7 million fraud attempts were recorded, accounting for 1.4% of all e-commerce orders. Regarding the affected demographic, men are typically the primary target, with the total value of these attempts reaching R$1.1 billion, taking into account an average purchase value of R$1,042.09. People aged 25 and under are also the most affected compared to other age groups, representing 1.9% of all fraud attempts. Key translation decisions: - Converted approximate measurements and symbols (1,41% → 1.4%) - Maintained the Brazilian Real symbol and formatting - Adjusted financial figures to standard international format - Kept the technical e-commerce terminology - Translated "pessoas de até 25 anos" as "people aged 25 and under" - Preserved the analytical and statistical tone of the original text
The report also indicates that this trend has been affecting retailers' sales performance: the average ticket for fraud attempts in 2023, at R$925.44, was twice as high as the average ticket for legitimate orders. As a result, fraud is impacting the most significant transactions in retail." Note: The text contains what appears to be a placeholder code "R$925.44" which seems to be part of the original text. Since it includes letters and numbers in a pattern that doesn't translate numerically, I've kept it as is in the translated text. If this was meant to represent an actual monetary amount, it would need to be clarified or verified.
The first edition of the study commissioned by Pagaleve - a fintech that offers Pix Parcelado (Installment Pix) as a payment method - and conducted by consulting firm GMattos, shows that in March 2024, the average cost of fraud management for a merchant represents approximately 1.91% of their revenue, including costs related to chargebacks and anti-fraud tools. Therefore, payment methods that reduce risk become even more relevant for merchants.
"Payment methods against fraud"
The Fraud Map indicated that among the most used payment methods in fraud attempts during 2023, credit cards rank second, accounting for 3.4 million attempts, equivalent to 3.4 billion reais; behind only bank slips, with 121.7 million fraud attempts, totaling 13.1 million reais. Note: I maintained the monetary reference to the Brazilian currency (reais) as a more accurate reflection of the original context about fraud in Brazil. If you'd prefer the values converted to another currency, please let me know.
Holidays usually bring an increase in fraud attempts. This year's Mother's Day, for example, data from Clearsale shows that fraud attempts reached approximately R$92 million, 4.11% higher than the previous year.
“It is understandable that credit cards are often used frequently for installment purchases since it is a very widespread form of payment among Brazilians, in addition to being traditional. But it's important to mention that there is already an installment method that doesn't require a credit card: Pix Parcelado (Installment Pix). This payment method saves merchants' costs related to fraud while providing an additional payment method, enabling more consumers to shop on the retailer's e-commerce platform,” explains Guilherme Romão, Chief Risk Officer of Pagaleve. “Moreover, companies offering Pix Parcelado, such as Pagaleve, cover any risks and costs related to fraud,” Romão adds. [Note: I've kept "Pix Parcelado" in Portuguese followed by the English translation in parentheses for the first occurrence, as "Pix" is a proper noun specific to the Brazilian payment system. For subsequent occurrences, just "Pix Parcelado" is used as the term would already be established.]
Pix Parcelado (Installment Pix) provides a form of inclusion for consumers who are not fully served by credit cards – thus contributing to the expansion of supply and increasing merchants' conversion rates.
"Just as you can hardly find online stores today without credit card payment available, we believe that in the near future, those retailers who do not adopt Pix Parcelado (Instalment Pix) will be left behind. The trend is that this payment method will grow even more in the coming years and establish itself as one of the most widely used payment methods in our country," concludes Guilherme.
