Forum Moderators: buckworks
Results of the eighth annual CyberSource Corporation survey of e-commerce fraud, released yesterday, shows that U.S. merchants will lose as much as $3 billion in revenue to fraud in 2006, up from $2.8 billion the year before. The good news: As a percent of revenue, fraud losses will be slightly less this year — merchants expect to lose 1.4 percent of revenue, down from 1.6 percent last year.
61 percent of merchants accept orders from outside the U.S. and Canada, and those orders represent 17 percent of their total order volume. But this business carries greater fraud risk. Survey respondents said that in 2006, 2.7 percent of international orders were fraudulent, a rate 2.5 times higher than the rate associated with U.S. and Canadian orders at 1.1 percent. Web shop owners reject 12.7 percent of international orders, consistent with last year's findings, a rate nearly three times that of orders originating in the U.S. or Canada.
