Business

Brazil's e-commerce avoided $113 million in fraud between January and May

For every BRL 100 ($18,69) on e-commerce purchases, BRL 1.50 ($0,28) were fraud attempts

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  • Sales grew at a stronger pace, so attempted frauds account for 1.5% of transactions now. Last year, they were 3.47%;
  • Of 41.5 million e-commerce orders with credit cards purchases, 613,450 requests were classified as fraud attempts.

Between January 1 and May 31, more than BRL 608 million ($113 million) in payment frauds was avoided on Brazilian e-commerce, according to Mercado e Consumo, reporting a new survey by ClearSale.

With the COVID-19 pandemic, Brazilian consumption habits changed, as they are turning to e-commerce. The confinement reflected in a significant increase in sales on e-commerce, and in the numbers of tentative frauds in the sector. It is what this report by ClearSale, made in partnership with ABComm (the Brazilian Association of Electronic Commerce), says.

The research points out that sales grew more than fraud attempts on Brazilian e-commerce. The general rate of fraud attempts in the analyzed period is 1.50%, which means that for every BRL 100 ($18,69) on e-commerce purchases, BRL 1.50 ($0,28) were fraud attempts. The overall average for Brazil in 2019 was 3.47%.

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The survey analyzed more than 41.5 million e-commerce orders with credit cards purchases, representing a total value of nearly BRL 18.7 billion. Of this sample, 613,450 requests were classified as fraud attempts, according to the report.

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Games segment was the one that had the highest sales growth amid quarantine, however, it was also the one that registered the highest rate of attempted fraud in the period (37%), followed by smartphones (10%) and musical instruments (7%).