Fergie's Tech Blog

Numbers: E-commerce Fraud will Cost Merchants $3.6 Billion This Year

Katherine Walsh writes on CSO Online:

As online retailers gear up for Black Friday and Cyber Monday--when they hope consumers will come in droves to spend money on their websites--they must also deal with another reality of electronic commerce: the increasing expense of preventing credit card fraud. E-commerce fraud will cost U.S. merchants $3.6 billion this year, a 20 percent increase over 2006, according to the ninth annual CyberSource Fraud Survey.

According to the study, which was conducted by CyberSource and Mindwave Research, merchants are losing more money in 2007 not because fraud is happening more often, but because keeping fraud at bay is becoming more expensive.

posted by Fergie @ 11/20/2007 01:03:00 PM