ONLINE FRAUD RESULTED IN MORE LOST DOLLARS

Updated: 01/21/2009 22:28
Reprints/Permissions  Hyip Monitor
Mindwave Research for CyberSource came up with a survey conducted in December 2008. This survey reported that online merchants lost 4 billion USD

Mindwave Research for CyberSource came up with a survey conducted in December 2008. This survey reported that online merchants lost $4 billion to fraud in 2008. The interesting tendency was also observed: while the rate of fraud was the same as it has been since 2006, but e-commerce is still growing. As a result the fraud rate caused more lost dollars. According to Doug Schwegman, director at CyberSource US e-commerce merchants have fought fraudsters to what amounts to an annual standoff during many years.

CyberSource commented such situation the following way. It was said that merchants had to accept more charges lest they turn away sales in tough economic times. However, it did not mean that online merchants were outwitted more than prior years.

In fact, order rejection rates due to suspicion of fraud, which have been consistent for several years at around 4% of incoming orders, dropped from 4.2% in 2007 to 2.9% in 2008. This means merchants accepted a higher percentage of the orders they received.

The merchants were better in 2008 at fighting fraud. It can be observed while looking at the falling rejection rates accompanied by steady fraud rates.

According to VeriSign survey made in September 2008, 85% of US Internet users were able to trust Websites with their confidential information. And the issue of information security was the most important factor when transacting online. More than nine out of 10 respondents also said they would not make purchases at unsecure sites. About 20% said they did less online shopping and other activities because of security concerns.

One-third of consumers said it would take discounts of 30% or higher to get them to consider shopping at unsecure Websites.


About the author

Eric Marriam is a young writer. Even though he is not experienced he is able to make really high quality work. Eric is able to identify a problem people have and break it down, able to appeal to emotion through emotive writing, can change style of writing to cater to different audience. Eric Marriam is able to work creatively and effectively with staff and managers and despite his young age, he proved to be a clear and effective writer and speaker, committed to maintaining quality and efficiency, seeking for professional growth and development.
You May Also Like