Online fraud: Keeping ahead of the bad guys

Although the percent of online orders lost to fraud has been steadily decreasing, to 1.4% in 2006, the value of fraudulent orders, projected to hit $3 billion this year, continues to rise along with the overall growth of retail e-commerce, CyberSource Corp. reports in its 8th Annual Online Fraud Survey. A big challenge for retailers is trying to catch as many fraudulent orders as possible without rejecting too many good orders—and without breaking their fraud management budgets. 20% of merchants plan to increase their staffs that review orders manually, while 37% are using 5-9 fraud-prevention tools, such as IP geolocation, order-velocity monitoring and address verification.

IRCE 2008 Conference Multi-Media CD-ROM