Recession gives rise to online fraud fears

26 November 2008

Loss prevention professionals working in the e-commerce industry expect online fraud to rise as the economy downturns into a recession, a new survey has reportedly found.

Business Journal said the study by fraud detection specialist 41st Parameter and the Merchant Risk Council found that 84 per cent of respondents are concerned that internet retailers will face a "slight or substantial" increase in fraudulent activity.

Some 66 per cent said their biggest problems will come from organized fraud rings and botnets - with another 30 per cent saying they worried about lacking the technology and funding needed to adequately protect their sites from cyber-crime.

Ori Eisen, chief information officer at 41st Parameter, said it is "particularly alarming" that as threats rise, IT budgets for fraud detection and prevention are falling back.

"As the global economy continues to slow down, organizations are slashing budgets across the board, including vital information technology needs designed to help protect the bottom-line," he said.

Statistics from the Nielsen Global Online Survey show that 94 percent of US internet users have bought goods from e-commerce sites.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development