The Real Cost of Fraud to E-tailers
Nick Caunter · Computer Fraud & Security · 2001
With 27 billion credit card transactions conducted annually, credit card spending is at its highest rate ever. Estimates suggest that 2%, or 540 million, of these transactions are conducted over the Internet. Unfortunately, the boom in online spending comes hand in hand with an increase in E-commerce credit card fraud. The statistics say that E-commerce fraud is 10 to 20 times more likely than face-to-face, with some research claiming rates as high as 5-10%. The actual cost truly shows the shortcomings, with companies like Expedia incurring a $4 million fraud bill last year.