Financial Crime World

Italy’s Online Banking Sector Takes Steps to Combat Fraud

A recent study has shed light on the efforts of Italian merchants and financial institutions to prevent ecommerce fraud, with secure payment services and robust security measures helping to reduce unauthorized transactions.

Vulnerability to Fraud

According to the research, Italy’s online banking sector is less vulnerable to account takeover or identity theft fraud compared to other European countries. This is a testament to the proactive measures taken by Italian merchants and financial institutions to protect against fraudulent activity.

The study also found that buying online and picking up in-store (BOPIS) experienced a slight increase in fraud attempts, despite a 126% surge in transactions and a 26% rise in average ticket values. Mobile transactions saw similar fraudulent activity, with cross-border transactions experiencing a 26% growth.

  • The ticketing industry saw a significant increase in fraud rates, with a 5.5% rise.
  • Travel experienced nearly a 4% increase in fraud attempts, likely due to the surge in volumes as these sectors reopened.
  • Retail fraud attempts decreased by 0.1% for domestic and cross-border transactions, while transactional volume increased by 43% for cross-border and 6% for domestic ecommerce purchases.

Other Sectors

  • Telco companies experienced nearly a 2% decrease in fraud attempts for cross-border purchases and a 0.5% decline for domestic purchases.
  • Gaming registered almost a 3% decrease in fraud attempts, while digital downloads saw a 0.5% decrease.

Conclusion

The study highlights the importance of robust security measures and regulatory environments in preventing ecommerce fraud. As online shopping continues to grow, it is essential for Italian merchants and financial institutions to remain vigilant and proactive in combating fraudulent activity. By doing so, they can protect their customers’ sensitive information and maintain trust in the online payment ecosystem.

Recommendations

  • Implement secure payment services and robust security measures to prevent ecommerce fraud.
  • Monitor transactions closely for suspicious activity and take immediate action to block fraudulent attempts.
  • Stay up-to-date with industry trends and best practices to stay ahead of evolving fraud tactics.