Understand fraud in Brazil and check out the best practices for fraud prevention.
Online fraud and scams generate billions of losses around the globe. In Brazil, e-consumers and online merchants are no strangers to problems derived from cybercriminals and fraudsters’ actions. PagBrasil, a payment processing service for Brazil, highlights that fraud related to identity theft, wherein the card or bank account holder’s personal information is stolen, is one of the most common fraud types in the country.
A recent Norton Cyber Security Insights Report identified that in the past year Brazilians suffered a total loss of USD 10.3 billion (approximately BRL 35.0 billion) as a consequence of cyberattacks, representing a growth of 10% compared to the previous year. 62% of the respondents believe it has become harder to stay safe and secure online over the past 5 years. Despite that, 1 in 5 users still doesn’t take any security measures to protect their connected devices.
The users’ reckless behavior when it comes to protecting their information results in compromised emails, account passwords and financial data, which then leads to different types of fraud. The level of credit card fraud in Brazil is particularly alarming. According to the Global Consumer Card Fraud 2016, by ACI Worldwide, the country is second only to Mexico in the global ranking of credit card fraud. The report points out that 49% of Brazilian consumers suffered at least one card-related fraud in the past five years.
The Brazilian e-commerce sector sees an average of 3,83% of fraud attempts, according to antifraud service Konduto. Brazilian banks, acquirers and card brands, however, consider that a healthy e-commerce business shouldn’t have more than 1% of fraud over its total revenue.
Brazilian consumers must become more engaged in taking measures to protect their data and avoid cyberattacks. In addition, e-commerce merchants need to ensure their businesses’ financial health by constantly improving their procedures to fight online fraud.
Using a fraud solution specifically designed for the Brazilian market is therefore key to succeed in reducing fraud-related losses. For that, PagBrasil offers PagShield, an intelligent and state-of-the-art fraud prevention solution, based on a unique technology with intelligent self-learning buying behavior analyses. PagShield technology fights fraud in real-time at a low cost, allowing merchants to identify fraudulent transactions automatically, thus saving time on manual reviews, while reducing false positives. Launched by PagBrasil in 2015, the service was promptly integrated by many merchants, who immediately saw a significant decrease in the number of chargebacks.
