Ecommerce Fraud Losses Expected to Grow 18% to $3.6 Billion

[mandy]

Dollar losses from e-commerce fraud will grow 18% this year over last to $3.6 billion, reports the ninth annual merchant fraud survey from payment processor and risk management company CyberSource Corp. The percent of sales that merchants expect to lose to fraud remained stable over 2006 and 2007 at 1.4% both years. The higher dollar losses are the result of growth in online retail sales.

Merchants report that 1.3% of accepted orders this year have turned out to be fraudulent, up from 1.1% last year. And they report they are reviewing 27% of orders, up from 23% in 2006. Of the orders merchants review, 75% are accepted as legitimate.

Merchants rejected 4.2% of U.S. and Canadian orders on suspicion of fraud...

full article: http://www.internetretailer.com/dailyNews.asp?id=24396

[sneakymagenta]

Sigh. 

[amy]

And they report they are reviewing 27% of orders, up from 23% in 2006. Of the orders merchants review, 75% are accepted as legitimate.

Merchants rejected 4.2% of U.S. and Canadian orders on suspicion of fraud...

Our review and rejection rates are much higher because our largest store is in a high risk category.  A great deal of my time every day is spent reviewing orders.

Fraud is definitely my largest concern.

[sneakymagenta]

Sigh (again).