Results of the tenth annual CyberSource Corporation survey of eCommerce fraud, released today, show merchants expect to lose a record $4 billion to online fraud in 2008. All the news today is pointing towards how pragmatic it would be to bring PIN based transactions online.
Fraudsters Filch $4 Billion Online in 2008
Record fraud losses for U.S. eCommerce; 10th annual CyberSource survey shows merchants shift priorities in down economy
They go on to report on the key take-aways from this year's survey which included:
- Projected dollar losses to U.S. eCommerce will hit a record $4 billion in 2008 (up from $3.7 billion in 2007).
- Merchants expect to lose 1.4% of their online revenue to fraud--this rate has held constant for the last 3 years.
- This year merchants accepted a higher percentage of orders--working more aggressively to boost top line sales.
- Though eCommerce sales are still increasing, 87% of merchants say they must fight fraud with the same or less staff in 2009.
- Merchants showed a dramatically increased interest in more sophisticated automation tools.
- Contrary to popular view, eCommerce is hardly hands-off. For each of the past 6 years, approximately 1 out of 4 online orders have been manually reviewed.
- International orders continue to have over 3 times the fraud risk of orders from the U.S. and Canada.