Fraud costs are challenging e-business users
1 min read
One in eight online UK merchants is now losing more than 5% of revenues to fraud – and rates of 1% are common – according to a survey of 150 of them, undertaken by CyberSource.
No fewer than 40% of merchants saw the rate of fraud loss increase in 2008, while rates for 13% climbed more than on fifth. Also, more than one fifth of merchants reject over 5% of orders because they suspect fraud, despite some turning out to be valid – meaning lost orders.
The problem is getting so difficult that many merchants now say they have to rely on manual reviewers to identify fraud, with 10% checking every single order.
Dr Akif Khan, co-author of the Fraud Report and head of client and technical services for CyberSource, warns all organisations to be vigilant.
“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.”
