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Online fraud has increased exponentially over the past few years, with the Federal Trade Commission (FTC) data showing that consumers reported losing more than $10 billion to fraud in 2023. This marks the first time that fraud losses have reached that benchmark, and it’s a 14% increase over reported losses in 2022. As a result, e-commerce merchants and retailers have reacted by adding friction to e-commerce interactions.   The risk is that a legitimate user may be denied a purchase because they have incorrectly been labeled a fraudster — a “false decline.” Now, as the holiday shopping season approaches, e-commerce merchants expect a surge in online spending and transactions, which in turn creates concern for an uptick in false declines.   In a recent webinar, Experian experts Senior Vice President of Business Development and eCommerce Dave Tiezzi and Senior Director of Product Management Jose Pallares explored strategies for how e-commerce merchants can determine the risk level of a transaction and ensure that they do not miss out on genuine purchases and good customers. Below are a few key perspectives from our speakers:  What are the biggest challenges posed by online card transactions?  DT: One of the biggest issues merchants face is false declines. In the report, The E-Commerce Fraud Enigma: The Quest to Maximize Revenue While Minimizing Fraud Experian and Aite-Novarica Group (now Datos Insights) found that 1.16% of all sales are unnecessarily rejected by merchants. While this percentage may seem small, it represents significant revenue loss during the high-volume holiday shopping season. The report also highlights that 16% of all attempted online transactions encounter some form of friction due to suspected fraud. Alarmingly, 70% of that friction is unnecessary, meaning it’s not preventing fraud but instead disrupting the purchasing process for legitimate customers. This friction translates into a poor online shopping experience, often resulting in cart abandonment, lost sales and a decline in customer loyalty.  What are the key consumer trends and expectations for the upcoming holiday season?  DT: Experian's 2024 Holiday Spending Trends and Insights Report reveals that while 35% of holiday shopping in 2023 occurred in December, peaking at 9% the week before Christmas, Cyber Week in November also represented 8% of total holiday sales. This highlights the importance for merchants to be prepared well before the holiday rush begins in November and extends through December. As they gear up for this high-volume season, merchants must also prioritize meeting consumer expectations for speed, ease and security—which are top-of-mind for consumers. According to our 2024 U.S. Identity & Fraud Report, 63% of consumers consider it extremely or very important for businesses to recognize them online, while 81% say they’re more trusting of businesses that can accomplish easy and accurate identification. They’re also wary of fraud, ranking identity theft (84%) and stolen credit card information (80%) as their top online security concerns. Considering these trends, it’s important for merchants to ensure seamless and secure transactions this holiday season.   False declines are a persistent problem for e-commerce merchants, especially during the holidays. How can merchants minimize these declines while protecting consumers from fraud? What best practices can merchants adopt to address these risks?  JP: False declines often result from overly cautious fraud detection systems that flag legitimate transactions as suspicious. While it’s essential to prevent fraud, turning away legitimate customers can severely impact both revenue and customer satisfaction. To minimize false declines, merchants should leverage advanced fraud prevention tools that combine multiple data points and behavioral insights. This approach goes beyond basic fraud detection by using attributes such as customer behavior, transaction patterns and real-time data analysis. Solutions incorporating NeuroID’s behavioral analytics and signals can also better assess whether a transaction is genuine based on the user’s interaction patterns, helping merchants filter out bad actors and make more informed decisions without disrupting the customer experience. What actionable strategies should e-commerce brands or merchants implement now to reduce cart abandonment and ensure a successful holiday season?  JP: One of the most effective tools we offer is Experian Link™, a credit card owner verification solution designed to reduce false declines while protecting against fraud. Experian Link helps e-commerce merchants and additional retailers accurately assess transaction risk by answering a key question: Does this consumer own the credit card they presented for payment? This ensures that legitimate customers aren’t mistakenly turned away while suspicious transactions are properly flagged for further review. By adopting a multilayered identity and fraud prevention strategy, merchants can significantly reduce false declines, offer a frictionless checkout experience and maintain robust fraud defenses—all of which are essential for a successful holiday shopping season.   Are there any examples of a retailer successfully leveraging credit card owner verification solutions? What were the results?  JP: Yes. We recently partnered with a leading U.S. retailer with a significant online presence. Their primary goals were to reduce customer friction, increase conversion and identify their customers accurately. By leveraging Experian Link and its positive signals, the retailer could refine, test and optimize their auto-approval strategies. As a result, the retailer saw an additional $8 million in monthly revenue from transactions that would have otherwise been declined. They also achieved a 10% increase in auto-approvals, reducing operating expenses and customer friction. By streamlining backend processes, they delivered a more seamless shopping experience for their customers.   Stay ahead this holiday season  For more expert insights on boosting conversions and enhancing customer loyalty, watch our on-demand webinar, Friction-Free Festivities: Strategies to Maximize Conversion and Reduce False Declines, hosted by the Merchant Risk Council (MRC). Additionally, visit us online to learn more about how Experian Link can transform your business strategy. Watch on-demand webinar Visit us The webinar is available to MRC members. If you’re already a member, you can access this resource here. Not a member? Our team would be happy to schedule a demo on Experian Link and discuss strategies to help your business grow. Get in touch today. 

As the desire for flexibility and affordability continues to grow across the overall vehicle market, it seems the trend is carrying over into the electric vehicle (EV) space—resulting in more manufacturers rolling out new models as the number of consumers opting for the electric fuel type rises. According to Experian’s Automotive Consumer Trends Report: Q2 2024, non-luxury EV registrations grew to 26.6%, from 22.7% last year, while exotic and luxury declined from 77.3% to 73.4% year-over-year. Furthermore, of the 291.1 million vehicles on the road in Q2 2024, EVs accounted for over 3.5 million, an increase from more than 2.7 million last year. Historically, EVs were often viewed as luxury vehicles that offered limited model availability to choose from. Though, it’s notable that as more non-luxury models are introduced, the EV market share is witnessing a shift in consumer preference. For instance, Ford led the new retail non-luxury EV market at 21.9% in Q2 2024, from 24.0% last year. Hyundai increased from 15.2% to 19.3% year-over-year, Chevrolet decreased from 24.2% to 13.2%, Kia went from 9.2% to 12.5%, and Volkswagen declined to 11.2% this quarter, from 15.8% in Q2 2023. Consumers continue to embrace EVs While understanding the current EV market share allows automotive professionals to assist in-market shoppers more effectively, leveraging multiple data points allows for a more nuanced perspective while helping them prepare for the future as the market continues to evolve. It’s notable that 77.4% of EV owners replaced their current EV with another one in the last 12 months. Meanwhile, 16.2% transitioned to a gasoline fuel type and 3.2% switched to a hybrid. With the EV model lineup expanding, consumers are potentially intrigued by the new options or holding steadfast to a manufacturer. Regardless, the majority of current EV owners are remaining loyal to the fuel type. However, data found that 81% of households with at least one EV also own a gasoline-powered vehicle, 14% also own a hybrid, and 12% own an additional EV. There are a number of factors that can play a role in owning another vehicle alongside an EV—such as range anxiety or tasks that require a larger and more versatile vehicle—so having a secondary option allows consumers to maintain the flexibility to meet diverse transportation needs. To learn more about EV insights, view the full Automotive Consumer Trends Report: Q2 2024 presentation.

Colorado has a great deal to offer first-time homebuyers (FTHBs). While the Denver area attracts many people with its combination of outdoor recreation, culture, and economic opportunities, other parts of Colorado are worthy of attention as well. Take Colorado Springs for example – it ranks third among best places to live in the U.S. when considering lifestyle, the job market, and overall popularity.1 Overview of the Colorado FTHB market Colorado accounts for 2.15% of all U.S. first-time homebuyers, according to Experian Housing’s recent first-time homebuyer report. This figure puts Colorado in the top 20 of all states across the country. Colorado's charm holds a special appeal for younger generations. Known for its wealth of enriching experiences, Colorado naturally attracts adventure-seekers. With an array of outdoor activities like hiking and skiing, it's no wonder that Generation Y and Generation Z make up 75% of all first-time homebuyers in the state, surpassing the national average of ~70%. Affordability With three-quarters of all FTHBs in the younger market segments, affordability is a key consideration in buying a home as housing costs are a significant part of an individual or family’s overall cost of living.2 What determines affordability? Affordability can be assessed through various metrics. For the purposes of this study, Experian Housing defined affordability by calculating the rent-to-mortgage ratio (RTM). This involves comparing monthly rent payments to monthly mortgage payments. A higher rent-to-mortgage ratio suggests renters may find mortgage payments more feasible, potentially making home buying a more appealing option. Comparison of rent costs to mortgage costs What we observed: Based on the RTM ratio, home buying is most affordable in Colorado Springs, Pueblo, and Castle Rock, while renting may look more attractive in Lakewood, Fort Collins, and Arvada. Additional measures to consider: Other realities play a key role in determining what is affordable. A prospective homebuyer’s income, monthly expenses, downpayment funds available, and the cost of the rent or mortgage payment as an added expense against income, factor heavily in final decision-making. In this regard, Experian Housing examined other metrics for assessing affordability. Debt-to-income What we observed: Down payments Sample of CO data observations: (High, mid, low down payments) Sale prices and income What we observed: Experian Housing examined the median sales prices and median incomes across the U.S. This metric is useful to see how much of one’s income typically is going to housing costs in a given area, which again, impacts overall cost of living. Comparison is essential because while sales prices may be higher in a given area, correlation with income helps determine affordability. A closer look at Colorado Springs Colorado Springs ranks #1 in affordability based on Experian’s research, and its status of best affordable place to live considering overall living costs, jobs, and livability is solid.4 The younger generation is the fastest growing population in Colorado Springs. Colorado Springs is expected to be the largest city in the state by 2050 given its current rate of growth and expansion.5 In addition to its five military installations, with a huge U.S. Air Force presence, key job sectors include the larger defense industry, education, technology, and manufacturing. Affordability coupled with opportunity and lifestyle suggest Colorado Springs deserves a closer look and area mortgage lenders have a lot to tout. Experian’s data system offers unique value to lenders given the ability to take a more comprehensive look at a borrower’s financial behavior. Experian uses credit, property, rental, and other alternative data sources to capture the borrower profile. Access to such data also gives Experian a unique ability to conduct research for reports like this one, and the recent reports on Texas and Florida. For more information about the lending possibilities for first-time homebuyers, download our white paper and visit us online. Download white paper Learn more 1 US News & World Report: Best Places to Live in the US 2024-2025 https://realestate.usnews.com/places/rankings/best-places-to-live 2 https://stg1.experian.com/blogs/insights/top-destinations-for-first-time-homebuyers/ 3 Arvada, Lakewood and Castle Rock, part of the Denver Metro Area and what is popularly known as the Front Range Urban Corridor, also have price to income ratios of 2.8%. 4 https://www.sofi.com/best-affordable-places-to-live-in-colorado/ 5 Colorado Springs Chamber & EDC, coloradospringschamberedc