Online fraud levels rising, claim retailers

 

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Posted on 15 Jan 2008 at 09:03

Online fraud at large UK retailers rose by 10% last year, mostly due to more sophisticated criminal tactics, claims a new report.

While a growth in online shopping is delivering record sales, retailers are frustrated with the lack of co-ordination from government and the payments industry in tackling rising levels of crime.

Only 17% believe law enforcement agencies are effectively challenging online fraud, with many claiming that police responses are limited to providing crime reference numbers and explaining their lack of resources.

"The suggestion from some is for a single, independent body to track organised fraud efforts, share information, direct police efforts, liaise with the card schemes and lobby the government on improving policy," says the fourth annual online fraud survey by transaction security specialist, CyberSource.

During the last twelve months the average retailer was spending 60% more on tackling fraud than in the previous year, but over three quarters of retailers surveyed still experienced growth, with nearly half seeing a 20% rise in revenue.

The key anti-fraud tools used by retailers remain the Address Verification Service (AVS) and Card Verification Number (CVN), but more than 70% of merchants now also support Verified by Visa and MasterCard SecureCode.

Last month PC Pro revealed how a single police constable was leading an investigation into eBay fraud cases totalling tens of thousands of pounds.

Author: Miya Knights