BizReport

RSS feed Get our RSS feed

News by Topic




BizReport : Ecommerce : May 05, 2016


Clean fraud and account takeover top UK businesses fraud concerns

Survey results from CyberSource reveal that clean fraud and account takeover are now the primary fraud risks causing concern for UK businesses.

by Helen Leggatt

Recently released findings of CyberSource's survey of 200 UK businesses reveals that the top three fraud risks that respondents were most concerned about are clean fraud (88%), account takeover (86%) and fraud on orders placed using alternative payment methods (80%)..

fraud risks.png

The top two - clean fraud and account takeover - both rely on the fraudsters being able to accurately impersonate genuine customers having garnered all the information they need. According to CyberSource's 2016 UK eCommerce Fraud Report, "As long as businesses can't confidently distinguish fraudsters from genuine customers, they'll find it difficult to maximize genuine revenue while minimizing fraud losses".

While online fraud management "traditionally only happens in relation to payment", CyberSource recommends that detection activity should be extended to support account takeover screening. Such screening can be based around the rules governing acceptance, review and rejection of purchases and thus allow the monitoring, challenging or blocking of account actions based on rules relating to account creation, login and updates.

"Account takeover screening could be particularly valuable for any business running a loyalty programme," says the report. "This is especially true in the travel industry, where trillions of loyalty points/miles worth more than 200 billion dollars are as yet unredeemed by the genuine customers who have earned them, making a valuable target for fraudsters."

The survey also found that just five out of 21 fraud detection tools are used by more than half of the respondents. Of those, 3 (CVN, AVS and postal address validation) are the most familiar to sophisticated fraudsters and the most easily circumvented with stolen data. Tools that are better suited to combatting sophisticated fraud, such as two-factor phone authentication, multi-merchant data and device fingerprinting, were found to be in use by less than a quarter of respondents.

With ecommerce forecast to grow by 10% in the UK over the next few years, issues surrounding online fraud are not going to go away. Yet, according to the research, two-thirds of businesses do not intend to spend more on fraud detection over the next 12 months.

Tags: ecommerce, fraud, research, UK










Subscribe to BizReport





http://www.bizreport.com/2016/05/clean-fraud-and-account-takeover-top-uk-businesses-fraud-con.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.