Online fraud on an upward curve

News Analysis

Online fraud on an upward curve

Online fraud will cost merchants around £1.6bn this year, according to a survey by CyberSource, a US provider of electronic payment and risk management products.

The cost, which is 8% higher than last year, emerges from a survey that also shows that for companies with annual online revenues of between £3 million and £15 million, online fraud losses are likely to affect nearly 2% of their revenue.

According to the survey, most merchants continue to rely on two basic means of fighting fraud: address verification systems, which compare the address on file at the card issuer to the billing address provided by the cardholder, and checks of the card verification number - the additional digits printed on a credit card.

What’s likely to hit merchants more than the fraud is the loss of confidence by online buyers. The recent rash of identity fraud and blended phishing attacks, coupled with more spyware worries, is enough to make even hardened online shoppers think twice before using a credit card online. It’s not just the net virgins that need convincing – it’s the power users too.

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy