Online fraudsters 'target every industry'

12 May 2009

No sector of industry is immune from online fraud and all types of business that use the internet need to guard against it on a daily basis, an electronic payments and risk management specialist has warned.

Cybersource said that while recent figures showed online fraud cost the airline industry $1.4 billion last year, financial wrongdoing is a "fact of life" for almost any business that uses card-not-present purchases.

A spokesman for the firm added that while the overall percentage of revenue lost to online fraud in the US and Canada has remained stable for the last three years, the explosive growth of e-commerce means the level of lost revenue has climbed at an equally sharp rate.

Furthermore, according to the State of Retailing Online 2009 report from Shop.org, increased investment in e-commerce could increase the scope for internet-based fraud.

The survey found that 80 per cent of retailers think online shopping is better placed to weather the recession, while 70 per cent are planning to either maintain or increase their investment in web operations.

According to annual statistics from the Internet Crime Complaint Center, reports of online fraud rose by 33.1 per cent last year compared to 2007.

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