Front Lines
news/analysis
‘WE CAN’T GO ON(LINE)
WITH SUSPICIOUS MINDS’
CONSUMER SUSPICION AND FEAR OF FRAUD KEEP MORE PEOPLE FROM
SHOPPING ONLINE SAYS 2009 CYBERSOURCE FRAUD REPORT
ONLINE fraud continues to than 16 per cent of those than the fear of online fraud
increase fuelled by negative surveyed had invested in such itself.
media stories and consumer schemes during the last 12 The report argues that
suspicion, according to the months and a further 15 per losses may have something to
2009 Cybersource Fraud cent had spent money drilling do with consumer’s
Report. down into existing customer’s reluctance to allow
histories for signs of fraud. merchants to capture and
There has been an store more of their personal
increased internationalisation data.
of shipments during the last When asked about the
12 months with eight per right of companies to store
cent of respondents sending their credit card details, 60
more goods to Europe and 12 per cent said that would not
per cent to US shoppers. allow it, even if it did make
The fraud has also their lives easier. A similar
The 5th annual Cybersource increased despite the proportion rejected the idea
survey highlights the fact that establishment of the Police of device finger-printing,
fraud losses now consume Central e-Crime Unit and a even after the benefits were Simon Stokes, UK MD for
one pert cent of revenue for major trend – ranked above fully explained to them. CyberSource
37 per cent of UK online the fear of fraud - has been This, Cybersource UK
merchants. the threat to businesses managing director Simon concerns over fraud. Overall,
The report was compiled through the loss or theft of Stokes, says, will be the major a total of 66 per cent of all
after interviewing 1000 UK customer data, high profile stumbling block for online respondents said they had
online retailers and suggests cases of which were merchants in the future concerns over security fuelled
that the figures only highlighted in the media especially as more than half by negative media stories. In
highlight part of the problem during 2008 and early 2009. of the UK population still fact one in three of those
as fraud is increasing despite Fifty four pent of those asked does not shop online. In fact asked said they knew
massive investment in said that this was a major 41 per cent who do not shop someone who had been a
3DSecure technology. More concern, two per cent more online said it was because of victim on online fraud, a fact
that is likely to compound
their fears, the report argues.
Commenting on the report,
Detective Superintendent
Charlie McMurdie of the
Police Central Crime Unit says:
“E Crime is a major problem
and one that cannot be
tackled by law enforcement
alone. To address the problem
successfully we will need the
continued support of industry
through expertise,
information and most
importantly, a willingness to
come forward and share
information about the
problems they are facing.
Working together I hope we
can improve the situation for
merchants large and small
across the UK.” RF
08 • RETAIL FRAUD
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