Growing fraud--and the threat of more--drive more e-retailers to encryption

The proportion of businesses that sell over the Internet and who are encrypting stored credit card numbers increased by 23% over the past year, reports Cybersource Corp.’s fourth annual fraud survey. Today, 59% of companies that sell online encrypt numbers, up from 48% a year ago. The growth is in response to heightened concern over identity theft, Cybersource says.

Guide to E-Commerce Technology

The number of companies that sell online who are conducting penetration audits, which check to determine if a site has been hacked, has nearly doubled to 63% this year from 33% a year ago. Further, 49% say they now employ a paid risk management employee responsible for battling online credit card fraud, the Cybersource survey found.

The rush of online shoppers is also attracting a rush of online fraudsters, Cybersource says, with 29% of retailers expecting to experience more credit card fraud this holiday season than they did last year. Many are using eyeballs and brains, not computer systems, to battle fraud: Respondents said 20% of their orders still require human intervention to screen for fraud.