Financial Crime World

Payment Card Fraud Prevention on the Rise in Brazil

Brazil has long been plagued by concerns over card testing, ID theft, and phishing/pharming/whaling. However, recent efforts have led to a significant decline in fraud attempts.

Decline in Fraud Attempts

According to data from ACI Worldwide, Brazil has seen an 8% drop in fraud attempts since upgrading its mandates and implementing enhanced fraud management solutions for merchants. This reduction is likely due to the increased security measures put in place around transactions.

Impact of Digital Transactions

The shift towards digital transactions has also played a key role in reducing fraud. While cross-border transactions saw a 1% growth in fraud attempts, domestic transactions experienced a 15% decline. This is likely due to the increased security measures put in place around transactions, which have led to a 4% improvement for credit and debit card transactions.

E-Wallets and Mobile Devices

  • E-wallets have become increasingly popular among Brazilian consumers, with an 18% increase in approval rates.
  • This surge has been accompanied by an 11% decrease in fraud attempts, primarily driven by domestic e-wallet transactions.
  • Mobile devices have seen a significant decline in fraud attempts, with a 4% drop for cross-border transactions and a 2% combined decrease (domestic and cross-border) for mobile transactions.
  • The travel sector has also seen a notable decrease in fraud attempts, down 5% overall. This is largely due to genuine transactions outpacing fraudulent ones, as consumers increasingly opt for experiential spending.
  • ACI customers have reported a chargeback rate of just 0.03%.
  • Other sectors that have experienced declines in fraud attempts include:
    • Ticketing (1.4%)
    • Gaming (7%)

Conclusion

Brazil’s efforts towards payment card fraud prevention appear to be paying off, with significant declines seen across various industries. As the country continues to digitize its transactions, it is likely that these trends will continue to shape the landscape of e-commerce and online payments in Brazil.