Online retailers hit by cyber crime

Wednesday, 16 May 2007
The convenience of shopping from your own home is now under target in a growing wave of cyber crime. New figures released by 3V, in conjunction with online retail industry body IMRG, shows cyber crime is hitting the income of Britain's e-commerce sector by an estimated £580m a year, according to new report. In a worst case scenario, the report stated almost two thirds (64%) of internet retailers have fallen victim to fraudsters, and it's costing some of them as much as 5% of their annual turnover. The '3V e-Fraud Barometer' shows that over a third (36%) of retailers have experienced a marked increase in fraudulent activity online since the introduction of 'chip and pin' on the high street.

Recent IMRG figures suggest annual online sales could surge to £78bn over the next three years, meaning by 2010 cyber fraud could cost retailers a massive £1.5bn per annum. And with both sales figures and CNP fraud cases on the rise, more than two in five (43%) retailers said the threat of being hit by fraud is becoming a bigger concern by the day.

Andrew McClelland, director of projects and marketing at IMRG, said: "The research from 3V highlights just how serious the problem of internet fraud has become for the online retail industry. While the industry is rapidly expanding it obviously provides a tempting target for fraudsters. "Retailers have told us that a range of tools and techniques provide the best defence against fraudulent activity but these should not increase costs significantly, or provide a barrier to legitimate customers."