The Worldwide E-Commerce Fraud Prevention Network reported today that nearly half of its members who responded to an internal survey feel that online fraud is a significant problem, but 70 percent agreed that fraud prevention tools can keep it to a minimum. The survey listed 11 fraud prevention tools and asked merchants whether they utilized them and which they rated as most effective at reducing online fraud. Interestingly, although 54 percent of respondents listed customer follow-up as a tool they use to combat fraud, only 38 percent viewed it as most effective. 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, medium and small online sites.
Sixty percent of merchants reported they spend less than one percent of total revenues on fraud prevention. Nineteen percent listed about one percent of revenues, and 10 percent reported they spend more than three percent of revenues on fraud prevention. Online merchants should understand that a layering of fraud prevention technology and techniques is the most effective course. This comprehensive report from a leader in research and analysis includes a review of some of the fraud prevention software available on the market today. This information is intended to help members further refine their fraud prevention solutions.