Boston, MA, USA,
December 18, 2000
Online Payment Fraud: The Grinch who stole
eChristmas?
Report Published
by Celent
Online Payment Fraud to Cost e-Merchants
US$300 million
this Holiday Season and Increase Rapidly
 In
a new report released by Celent Communications,
entitled "Online Payment Fraud: The Grinch that Stole e-Christmas?,"
Celent examines the current level of fraud perpetrated at virtual
storefronts in the US. Celent estimates that cyber merchants are
experiencing fraud rates that are 30 times higher than their
bricks-and-mortar counterparts. During this holiday season alone,
online stores will loose $300 million to fraudulent transactions, equal to
three percent of e-commerce sales.
"Today, merchants must absorb the
large majority of these losses, a significant burden to merchants
struggling to be profitable," comments Meredith
Hickman, author of the report. "In the short term, we expect
to see more and more retailers turn to score-based solutions to help
detect fraudulent transactions. However, we expect to see credit card
associations and member banks come to the rescue with a workable solution
that reaches the critical mass within 3-5 years."
The report compares a host of fraud
detection and protection solutions available on the market, including the
failed SET initiative, new three domain (3D) initiatives, score-based
models, smart cards, and biometrics. It also examines the likely evolution
for combating online payment fraud.
A Table of
Contents is available online.
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