Online retailers expect to lose 1.8% of their incomes to fraud, with 57% viewing fraud as the biggest business threat they face - according to the 2010 UK Online Fraud Report from Cybersource.
According to the findings, 1.6% of all transactions are actually fraudulent. However, retailers reject 4.6% of orders, due to suspicion of fraud - suggesting that fear of dishonesty causes retailers to lose more income than through the cases they really do experience.
The picture is different from the point of view of consumers. 71% had concerns about online fraud, and over a third had either suffered from card fraud or knew of another person who had. Fortunately, 85% tooks steps to ensure they used secure websites.
In reality, both merchants and consumers can do a great deal to minimise online fraud. If you run an eCommerce website - or are thinking of doing so - ask us for advice on how you can do this.
