Cyber criminals threaten to destroy internet trade, with more than half of cyber traders reporting online frauds to the police, a new report claims.
The study, carried out by information company Experian which spoke to 800 online retailers, finds that 57% had reported frauds to the police.
Experian chief operating officer Richard Fiddis said: “Only 9% of frauds reported by online retailers to the police currently lead to a prosecution.”
The information company claims online retailers have failed to install computerised fraud detection systems, and that more than half of online firms do not use external data to check customers' names and addresses.
Experian's report is endorsed by new figures from the Association for Payment Clearing Services, which shows that fraud where the card is not presented – over the phone or over the web – grew last year by 146% to £40m.
Experian claims two out of three retailers are taking more than one month to detect credit card crime, often allowing the criminal to escape.
The study found that 20% of online retailers are experiencing fraud chargeback levels in excess of 1% of sales, with some as high as 10%.
The BetterWeb Program is designed to improve the quality of information that an online business provides to its customers, especially with regard to how security and privacy issues is managed.
