Credit Card Fraud

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Consumer fraud against retailers

According to an 2002 Gartner Survey,
"Credit card fraud causes e-tailers to lose about 1% of their transaction volume and sales revenue, while e-tailers reject 6% of consumer purchase requests because they appear suspicious. Gartner analysts note that 6% of sales equals $950 million in revenue for the fourth quarter alone.

The e-commerce leaders surveyed admitted that they mistakenly reject about 2% of total sales, costing them $315 million in sales."

Internet fraud rates are about 10% higher than brick-and-mortar rates. Many cases are from stolen credit card numbers.
"From a financial perspective, the merchant pays the most for these types of theft. By law, U.S. cardholders are responsible only for the first $50 of a fraudulent transaction, and MasterCard and Visa recently waived that requirement for online commerce. "

See:
  Online fraud growing - Dec. 2002 InternetNews article
Online Fraud Prevention Tips  at AntiFraud.com

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