How Fraudulent Are Singapore-issued Cards?
While eCommerce continues to bloom globally, it is still outpaced by growth in total fraud losses. In 2015, total losses from card fraud increased by 19 percent over the previous year, while the overall card transaction volume grew by only 15 percent. But what’s the picture at the local level? Specifically, are Singapore-issued credit cards–in a domestic market that has strict laws and financial regulation–spared from this exposure and risk?
Broadly speaking, the answer is yes, or at least they are spared some of the risk. Between November 2015 and October 2016, ACI Worldwide risk analysts saw 0.31 percent attempted fraud rate–across all sectors–on Singapore-issued cards, 63 percent lower when compared to all cards (0.84 percent). However, despite the low fraud ratio, attempted fraud on Singapore-issued cards was still valued at millions of dollars.
It was also interesting to note that 62 percent of attempted fraud on Singapore-issued cards was related to USD purchases. USD transactions, however, only account for 7.6 percent of total Singapore card transaction volume, which indicates that transactions paid in USD are subjected to substantially higher fraud risk.
*Period from Nov 2015 to Oct 2016
The below graph shows the top three currencies for attempted fraud using Singaporean cards. Based on the fraud ratio, transactions made in USD are close to three times more likely to be fraudulent than any other currency. EUR is the next highest with a 1.4 percent attempted fraud rate. Transactions made in Singaporean Dollars (SGD) have a low fraud ratio at 0.1 percent (eight times lower than the overall attempted card fraud rate).
*Period from Nov 2015 to Oct 2016
Are fraudsters targeting high value goods?
On the contrary, 80 percent of attempted fraudulent transactions in USD were less than USD 500, while only about 8.5 percent of fraudulent transactions were more than USD 1,000. But irrespective of the value of an item, merchants are subjected to fees and lost sales when chargebacks are filed, requiring them to take necessary steps to reduce the occurrence of chargebacks.
The majority of fraud attempts linked to Singapore-issued cards is seen on IP addresses coming from Singapore (37 percent) and the U.S. (30 percent). Meanwhile, U.S.-based IP addresses only account for 2 percent of total transactions. Based on these findings, ACI Worldwide recommends that merchants–when it comes to Singaporean cards–should employ greater vigilance when reviewing transactions made with USD and a U.S. IP address.
*Period from Nov 2015 to Oct 2016
By global standards, Singapore is still a low-risk market for credit cards, but as the number of eCommerce merchants continues to grow, vigilance is required. It’s worth reiterating the need to identify and minimize fraud attacks through optimized fraud rules that are responsive to rapidly-advancing technology and evolving fraud trends.
Related blog posts
PSD2 Carries Over to the U.S. – Thanks to the Phone in Your Hand
Let me ask you a favor. Could you put down your phone for just a minute? Unless, of course, you’re reading this on your mobile device.
It can be an uphill battle asking someone to put down their phone these days. I have a tween, so I know the struggle! One of the reasons we’re so reticent to do so is the sheer power contained within these devices. At this point, it controls the music, the temperature, the locks and even the lighting in your home, and that’s not even touching on its entertainment value, or its capabilities as a payment device. The device, in its present form, has been around for ten years now, and in 2017, it’s safe to say there’s no going back.
Assessing Same-day ACH In The New Era of Real-time Payments
The pace of payments has risen sharply in the U.S. since the introduction of same-day ACH in September 2016. Following the global movement towards immediate payments, the pace is set to pick up as real-time speed arrives through schemes such as The Clearing House (TCH) Real-time Payments System and Zelle networks.
The Many Delicious Flavors of P2P
We’re now very much into the height of summer (real feel today outside my door is 98 degrees, not to be confused with that amazing band from the 90s). And following the recent Zelle launch, we’re also very much into the height of P2P hype. As Mark and I are wont to do, we’re mixing up food and payments (a delicious combo)! And in this case, we’re talking about one of our favorite summer (or year-round) treats, ice cream. We’ve waxed poetic about ice cream in prior blogs (i.e., shops at the Cape and in Newport that still abide by old-school cash-only policies, etc.). Specific to this post, if you think about it, the roster of P2P options continues to increase, like the number of amazing flavors that Ben & Jerry’s offers these days. And with spoons in our mouths and napkins in our hands, it’s time to rant!
The Path to Faster Payments – A US Perspective
With news that the Faster Payments Task Force released its final findings today and set the deadline for our country’s new payment system to be live by the year 2020, a mere 29 months away, it leaves many in the industry getting ready to roll up our sleeves because it is going to be an all-hands-on-deck 29 months.
Connect, Learn, Share – The ACI Exchange 2017 Round UP!
If you’ve never experienced “dry heat” (which is much like actual “heat”)—you haven’t lived! Stepping off the plane in Phoenix last month for ACI’s Annual User Exchange, the mercury was literally jumping out of the thermostat at 116 degrees Fahrenheit…and it was unlike anything this New Englander has ever experienced. I mention the weather here because it’s the important backdrop to talk about Exchange itself; you could say that the heat was required to properly bake this event to perfection over the four-day agenda and fully deliver on this year’s theme of connect, learn, share.
Why ATMs Are a Successful Piece of 'Social Tech' Not Heading for Retirement Anytime Soon
The ATM turned 50 last week (on June 27, to be exact) and despite the spectacular growth of alternative payment methods and predictions that we are heading toward a cashless society, birthday celebrations around the world were upbeat. Most industry commentators seem to agree that the ATM is alive and kicking. As ACI’s Lu Zurawski, EMEA consumer payments lead, says in an interview with Forbes: “The ATM is a successful piece of social technology and won’t be heading for retirement any time soon.”
Challenges and Opportunities for Girls and Women in STEM
ACI is planning to host its third Coding for Girls camp in Omaha on July 15th—a free day-long event to teach middle school girls about coding and programs like HTML, CSS and Java, hosted by the Peter Kiewit Institute at the University of Nebraska at Omaha (UNO). As we gear up for our next camp, we sat down with Deepak Khazanchi, Professor and Associate Dean for Academic Affairs at UNO College of Information Science & Technology (IS&T) along with Shelley Ahlers, ACI’s SVP of Software Engineering, to get a deeper picture around the challenges and opportunities for women and girls in Coding and STEM fields.
The ATM Turns 50: Why Evolution Is Key For Its Survival
The ATM turns 50 this year and half a century on ATMs remain popular with consumers worldwide. Banks and building societies more than ever see ATMs as a key channel of communication and interaction with their customers and many are now offering ATM services that go beyond simple cash withdrawal. We spoke with Paul Horlock, Director for Payments at Nationwide, one of the biggest high street financial providers in the UK. Nationwide has been working with ACI Worldwide for over 30 years and currently uses ACI’s BASE24 eps solution to power an estate of around 700 ATMs across the UK.
Amazon & Whole Foods: A Game-Changer for Customer Experience
The estimated $700-billion-dollar grocery business recently got a jolt when Amazon announced its intended purchase of Whole Foods Market. With more than 450 stores in the U.S. and UK, Amazon will be plunging head first into the physical world of commerce.
SleepAtNightability – Why We Must Not Forget The Fundamentals of Payments
When I saw this quote on Twitter, I literally LOL-ed, mainly because it’s so true (thanks to James Wester & Sam Maule). Indeed the ’boring’ in payments exists for good reason; when it comes to peoples’ money, you can innovate, but you cannot forget the fundamentals. The basics may be boring, but the lesson there is that they are vital.