Fraudulent payments gnaw at revenues

One in eight online UK businesses had over 5% of 2008 revenues stolen by fraudsters, according to secure payment provider CyberSource.

More than one third of the 150 firms surveyed by CyberSource lost at least 1% of revenues to fraud, whilst 60 of the businesses said fraud had increased compared to 2007.

Overall, online fraud – customers paying for goods using fake or stolen details – increased 2.6% on year.

Fifty-two percent of online retailers said data theft is the biggest threat to business, compared with just 6% in 2007.

In addition to lost revenues, fraud costs businesses money installing protection tools and employing security staff.

Dr. Akif Khan, co-author of CyberSource’s annual fraud report, said: “UK merchants continue to bear a heavy burden of fraud, including high costs and consequent profit losses.”

Simon Stokes, CyberSource managing director, added: “It is particularly worrying to see that this trend is not being pushed back.

“And, when you put it against the backdrop of the current financial crisis, no-one can afford to lose revenue in this climate.”

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