Fraud attempts rise 66% in Brazilian e-commerce

Brazilian e-commerce fraud attempts surged by 66% in one month according to a recent report by Equifax BoaVista. While this spike in fraudulent activity raises alarms, the study highlights an interesting shift in fraudsters’ tactics: the average ticket size of frauds dropped by 59% in August 2024 compared to the same period in the previous year.

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• Central Bank Of Brazil And Febraban To Change Pix Refund Mechanism For Fraud Victims
• How Your Business Can Tackle Fraud In Brazil With CommerceGate’s AML PIX Solution

This change suggests that fraudsters are increasingly targeting lower-value items in an attempt to evade detection. Although smaller in financial impact per transaction, the sheer volume of fraudulent attempts represents a significant risk to merchants targeting the Brazilian market. 

Fraud Hotspots and Patterns

The data from the study reveals that 25% of fraud attempts occur in São Paulo, Rio de Janeiro, and Minas Gerais, with São Paulo accounting for the majority. Conversely, the states with the lowest rates of fraud—Acre, Amapá, and Roraima—represent just 0.2% of incidents.

The study also noticed time-based patterns: fraudsters are most active on Thursdays and Fridays between 11 a.m. and 3 p.m., with these time slots accounting for 35% of all attempts. Sundays, on the other hand, are the least targeted days, likely due to reduced consumer activity.

Factors Driving Fraud In Brazil

Pedro Tavares, Equifax BoaVista’s Superintendent of Anti-Fraud Products, highlighted the role of rising cell phone thefts in facilitating fraud. Stolen phones often provide access to sensitive consumer data, enabling criminals to execute scams more effectively.

Despite this challenging landscape, the report underscored the effectiveness of fraud prevention tools, which reportedly saved online retailers from losses totaling R$833 million in August alone.

The Challenge of Tackling Low-Ticket Fraud

The shift toward lower-ticket frauds reflects a calculated move by fraudsters to bypass traditional fraud detection systems. Merchants who rely solely on legacy systems or basic anti-fraud tools may struggle to detect these smaller, seemingly less risky transactions.

This strategy is particularly concerning for merchants in Brazil, where payment diversity—including credit cards, Pix, and installment plans—adds complexity to fraud prevention efforts.

Strengthening Fraud Prevention with CommerceGate

For merchants entering this complex environment, robust anti-fraud solutions are essential. CommerceGate’s tailored fraud prevention tools offer a proactive defense against evolving fraud tactics, leveraging decades of experience paired with best-in-class tools powered by AI. 

Additionally, CommerceGate also offers unique solutions specifically designed for the Brazilian market, such as AML PIX solutions. 

Meet CommerceGate’s AML PIX solution

CommerceGate’s AML PIX solution helps platforms in combating money laundering by introducing stringent controls and verification measures. By allowing merchants to create QR codes linked to specific CPFs (Brazilian Tax IDs), the solution ensures that payments originate from verified individuals. This significantly reduces the risk of money laundering by preventing the use of anonymous or illicit funds for betting activities.

How The AML PIX Solution Works: 

With CommerceGate’s AML PIX Solution, merchants can create a QR code for specific CPFs, ensuring control over payments and guaranteeing they come from verified users.

This feature allows merchants to transmit the CPF code to CommerceGate and, with an additional parameter, decide whether to generate a QR code specifically for the named user. The QR code can be easily paid from any bank account, provided the account holder has the same CPF provided by merchants.

Adapting to a New Era of Fraud

The Brazilian e-commerce market, one of the fastest-growing globally, presents amazing opportunities for merchants. However, the rise in fraud attempts underscores the need for continuous investment in security measures. 

CommerceGate’s solutions are particularly well-suited for high-risk industries like e-commerce, Forex, and iGaming. By combining local expertise with innovative technology, CommerceGate empowers merchants to safeguard their businesses without compromising user experience—a critical factor in maintaining customer trust and loyalty.

Want to learn more about how CommerceGate can protect your business? Contact us today to explore our tailored anti-fraud solutions.