One in eight online businesses had 5% of revenues stolen by
fraudsters last year, according to research from security supplier
Cybersource.
More than a third of these firms lost at least 1% of revenue to
fraud. The losses are the result of fraudulent online payments.
A total of 60 out of 150 businesses surveyed said they lost more
to fraud in 2008 than the previous year.
The rise comes despite efforts from credit card firms and online
businesses to improve customer verification,
The Verified by Visa and MasterCard SecureCode schemes have been
the most popular anti-fraud investment in 2008, with 16% of
merchants integrating the programmes, according to the survey.
"UK merchants continue to bear a heavy burden of fraud,
including high costs and consequent profit losses," said Akif Khan,
co-author of the report and the head of client and technical
services for Cybersource.
"There are hopes for promising new anti-fraud developments
coming from government, but even with this kind of support the
merchants' principal protection will, for the most part, remain the
tools and programmes that they can assemble in their defence."