Preventing Credit Card Fraud and Identity Theft: A Primer for Online Merchants
Paul Fichtman · Information Systems Security · 2001
Business to consumer E-commerce is expected to be approximately $23 billion among domestic U.S. E-commerce merchants this year. This is the story that everyone talks about. The hidden story is that, based on last year's numbers, losses due to identity fraud are expected to be in excess of $2.3 billion. These are losses that will be suffered by both dot.com and bricks-and-clicks merchants. All but the most well-established are already feeling the asphyxiating effects of extremely tight capital markets demanding clear plans for profitability. With fraud losses of 10 percent it is extremely difficult, if not impossible, to show a profit. If E-merchants recognize the threat and implement cost- effective measures to prevent this identity fraud, they can increase both top and bottom line results.