Visa-owned CyberSource has unveiled the outcomes of its thirteenth annual e-commerce fraud survey, which showed that retailers are beginning to make important headway in the battle against fraud, even though it is ongoing.
The percentage of the number of orders that were found to be fraudulent fell to 0.6 percent in 2011, from having been 0.9 percent in 2010. It has now reached the lowest point that has been seen in the thirteen years since the annual study began.
However, the survey also found that the cost of fighting against indentity theft is continuing to increase. There were larger dollar losses last year, and there was a rise in manual review. Retailers found themselves expressing their concerns, once more, that fraud is becoming increasingly challenging to identify. Among the respondents of the survey, 27 percent stated that they are involved in m-commerce, and that the initial indications point toward promising progress in minimizing fraud in mobile.
According to the senior business leader of fraud and management solutions at Cybersource, Andrew Naumann, merchants and the economy as a whole are happy to hear the positive news about e-commerce’s continued growth. However, he also stated that “The bad news is that fraudsters took in a higher dollar volume, the first such increase we’ve seen since 2008.”
Naumann pointed out that the survey indicates that merchants are putting more efforts than even into trying to keep fraud at bay, and are reviewing an increasing number of orders while they are boosting the number of tools that they use. He said that this is a clear indication that fraudsters are increasing in the sophistication of their crimes.