E-commerce fraud reached USD 2.8 billion

According to a recent survey by CyberSource, an electronic payment and risk management firm, online entrepreneurs this year will lose at least $ 2.8 billion due to fraudulent trading practices. e-commerce (e-commerce) - up 8% from last year's figure.

CyberSource's survey has shown that online businesses with annual revenues between $ 5 million and $ 25 million are the hardest hit. For these companies, losses due to e-commerce fraud reached 1.8% of total revenue - that is, a 0.3% increase compared to 1.5% of last year's total revenue.

Meanwhile, online businesses with annual revenue of more than 25 million USD suffer less damage. This year, the damage caused by e-commerce fraud to these companies only stood at 1.2% of the total annual revenue - an increase of 0.1% compared to 2004.

On the contrary, small traders are happy to see that the damage caused by e-commerce to them has tended to drop sharply this year with a decrease of 0.5% to 1.6. % compared with 2.1% last year.

According to CyberSource, the reason for this decline is that this year small retailers have strengthened the approval of manual online orders to detect fraud while not hiring more workers, so the loss new harm significantly reduced. In fact, the survey showed that traders this year approved a quarter of their orders by hand, up 4% from the 21% of 2004.

Most traders today rely on the following two main methods to combat e-commerce fraud: the first is to use the address verification system - ie the address comparison method on payment accounts. with the address where the payment card user has registered with the bank. And measures to check the number of payment card authentication.