Online Credit Card Fraud Jumps 32 Percent As U.S. Economic Woes Continue
By Anna Johnson on October 12th, 2010Retail Decisions (ReD), which provides payment fraud prevention solutions, estimates that U.S. online credit card fraud could be 32 percent higher in 2010 than in 2009.
Carl Clump, CEO of ReD, says the huge increase in online credit card crime – consisting of fraudulent attempts to buy goods on the internet, by mail order or by telephone – is likely to increase as the U.S. economic recession persists. He said:
“In the first six months of 2010, our figures show that attempted ecommerce payment fraud reached an estimated value of $1.14 billion. We predict this could reach $2.83 billion by the end of the year – increasing by 32 percent compared to the $2.14 billion total recorded in 2009.”
ReD’s figures indicate that not only are credit card fraudsters becoming more aggressive – attempting fraud attacks more frequently – but are also targeting more expensive items. In the first six months of 2010 the average transaction value for attempted fraud rose by an estimated 34 percent compared to the same period last year, from $111 to an estimated $149.
Carl Clump says U.S. merchants will need to implement a dynamic fraud prevention solution to combat the rise in online credit card fraud.
