Merchant account providers are to be commended for their efforts in combating online fraud, as a survey reveals 2011 was a record low for criminal transactions. Author: Chris Taylor
Merchant account providers are to be commended for their efforts in combating online fraud, as a survey reveals 2011 was a record low for criminal transactions.
According to the 13th annual e-commerce fraud survey from Visa subsidiary CyberSource, the percentage of online orders that turned out to be fake dropped from 0.9 per cent in 2010, to 0.6 per cent in 2011.
BankTech.com reveals that this figure represents a record-breaking victory against crooks in the respected industry report.
However, the report also confirmed that although the volume of criminal transactions was down, the dollar value of these fraudulent transactions rose.
“The continued growth in e-commerce is a welcome development for merchants and the economy overall,” said Andrew Naumann, CyberSource senior business leader, in a BusinessWire.com statement.
“The bad news is that fraudsters took in a higher dollar volume, the first such increase we’ve seen since 2008. Our study shows merchants are working harder than ever to keep fraud in check, using more tools and reviewing more orders. Clearly the criminal element is growing more sophisticated.”
Merchants also reiterated their concerns over the fact that certain types of fraud are becoming harder to detect. However they were more positive about the future of mobile payments, with 27 per cent of study respondents saying that they are already engaged in mobile commerce and are experiencing little-to-no security problems at all.