UK Retailers Target of Rising Online Fraud
Almost half of the total retailers in the United Kingdom have experienced high levels of online fraud during the past twelve months, according to a recent study by CyberSource.
In an interview of 165 retailers for the Online Fraud Report by CyberSource, 25% of the respondents said that they suffered the most in actual losses from online fraud that increased by over 10% from the past year (2007).
Smaller merchants too were not spared who were targets of much more fraud attacks. The situation appeared worse when respondents cited specific examples suggesting the increasing impudence of fraudsters in trying to defraud merchants.
Managing Director, Simon Stokes, of CyberSource, said that swindlers are constantly showing resilience to any barrier placed against them, finding new techniques to beat the obstacles. Vnunet published this in news on January 16, 2008.
In its study, CyberSource found that 42% of the bigger retailers had known about fraudsters' activity in targeting certain products that were easily saleable. Merchants reported that they also received orders placed in the name of stolen identities, and were aware of fraudsters waiting near the victim's address to collect the package.
Stokes also said that the online payment service, the card issuing agencies, and the relevant banks and other financial institutions need to work together to help retailers in effective implementation of anti-fraud tools. Vnunet reported this on January 15, 2008. Stokes said that while each party in its own way is doing quite well, what's required is a coordinated effort that would benefit all. In this context, 17% of respondents felt that the police are efficiently challenging crimes of online fraud.
Managing Director, Jo Evans, at the online retail group, Interactive Media in Retail Group, said that retailers should act proactively to prevent operations of fraud. He said that while online retail is growing at a dramatic rate, the infrastructure needed to support it does not always commensurate. TechWorld reported this on January 15, 2008.
Evans said that although law enforcement at present may be sluggish in implementing their practices and policies, the industry as a whole needs to consider ways to work jointly to effectively tackle fraud.
Related article: US Passes Baton to Asia in Spam Relay
» SPAMfighter News - 30-01-2008