Greetings WOW Members and Web Professionals everywhere!
Last week we podcasted an interesting interview with Laura Mather, PhD Founder and VP of Product Marketing Silver Tail Systems an anti fraud company and a volunteer for the anti phishing working group APWG. The topic was the size and scope of cyber crime and what to do about it. To add additional perspective to the topic, for today’s podcast, I’ll hone in on a few of the specific online fraud details that you should be aware of.
According to an 2008 report on Cyber Fraud conducted By CyberSource.com, “Managing online fraud continues to be a significant and growing cost for merchants of all sizes.”
According to the surveys executive summary, total losses from online payment fraud in the U.S. and Canada have steadily increased and in 2007, the report estimates that $3.6 billion in online revenues will be lost to online fraud up from $3.1 billion in 2006.
A few key findings:
* The percent of accepted orders which are later determined to be fraudulent increased slightly.
* The share of incoming orders merchants decline to accept due to suspicion of payment fraud was also up slightly.
* Merchants with order rejection rates near or above the 4.2% rate are rejecting a significant number of valid orders.
* Chargeback’s Understate Fraud Loss by as Much as 50%
* International orders is over two-and-one-half times as high as domestic orders.
* Merchants also reject international orders at a rate two-and-one-half times higher
Whether you’re designing or developing for the eEnterprise or small business, it would be worth your time to review the entire survey.