Online fraud to claim record $4bn in 2008

11 December 2008

Instances of online fraud are set to cost US e-commerce firms a record high of $4 billion this year, a new report has claimed.

The study from CyberSource found that the overall amount of revenue lost to online financial fraud has remained steady over the past three years at 1.4 per cent.

However, this year businesses cannot rely on a surge in market growth to shore them up against losses.

The study added that international orders were three times more likely to result in fraud than ones placed in the US or Canada.

Looking ahead, the report said that while sales will continue to increase into next year, 87 per cent of companies believe they will have to fight fraud with the same number of staff - or less.

CyberSource director of market and customer intelligence, Doug Schwegman, said in previous years, online firms had battled fraudsters to an "annual standoff".

"This year, however, for the first time, merchants could not rely on double-digit market expansion to bolster online revenue growth or to cover inefficiencies," he commented.

Established in 1996, CyberSource is a payments management firm that operates in 190 markets worldwide.

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