Mobile payments is such a new concept that many in the media continue to inaccurately report what happened this week between Read Now
Online retail fraud picks up in 2011.
Online revenue lost to fraud rose 26% to $3.4 billion last year, accounting for 1% of the $340 billion retail e-commerce sales in the U.S. and Canada as figured by CyberSource Corp. for its 2012 Annual Fraud Report. The total includes transactions at government, education and not-for-profit organizations as well as retail sales of consumer goods, event tickets and travel services. The increase in fraud corresponded with a 13% rise in online sales from the $300 billion CyberSource reported for 2010, when it said fraud accounted for 0.9% of online sales. Interestingly, the report indicates that criminals are hitting fewer if larger orders; it notes that the percentage of accepted online orders that turned out to be fraudulent last year fell overall to 0.6% from 0.9% in 2010. That decline was bigger for most of the 325 retailers surveyed. But one group that accounted for about 15% of respondents—those with annual online sales between $5 million and $25 million—showed a slight increase in the percentage of accepted orders gone bad, to 1.2% from 1.1%.