The agency approached 800 online retailers to establish the extent of Internet fraud, its operational impact, the effectiveness of current fraud prevention systems and, finally, to identify common features in the way Internet fraudsters operate. The survey revealed that Internet retailers are proving easy prey to credit card fraudsters, made easier by the absence of online fraud detection systems and a police force unable to tackle this new type of crime. In consequence, online retailers are increasingly becoming victims of repeated, opportunistic and unsophisticated fraud. The survey showed that online retailers either do no checking or rely almost totally on manual fraud prevention measures. Almost half said they did not use any external data when verifying a customer's name and address, before authorising an online transaction.
Retailers become aware far too late when they have been victims of fraud.
The vast majority still employ expensive and inaccurate manual processes. Fraudsters have realised that methods of prevention are currently so inadequate they need spend little time or effort covering their tracks. It suggests that the fraudsters often have information about the real name of the cardholder. All rights reserved.