The Worldwide E-Commerce Fraud Prevention Network reports nearly half its members feel online fraud is a significant problem, but 70 percent agreed that fraud prevention tools can keep it to a minimum. In a voluntary online poll, members were asked how online fraud affects their businesses. Only 1 percent said they never worry about it. The survey listed 11 fraud prevention tools, and asked merchants whether they used them and which they rated as most effective at reducing online fraud. The least utilized tool was a custom-built neural network, with only 12 percent of merchants indicating they use this fraud prevention method.
Merchants taking the survey represent large, midsized, and small online sites.
Sixty percent of merchants reported they spend less than 1 percent of total revenues on fraud prevention. Nineteen percent listed about 1 percent of revenues, and 10 percent reported they spend more than 3 percent of revenues on fraud prevention. Inc. All Rights Reserved.