U.K. E-Commerce Fraud Rate Twice That of U.S. and Canada

Jan. 21, 2011

CyberSource, the e-commerce processor acquired by Visa last spring ( CNP Report April 23, 2010 ), recently released the results of its annual survey examining fraud in the U.K. The Mountain View Claif.-based unit, estimated that the fraud rate for e-commerce merchants in the U.K. rose slightly to 1.9 percent in 2010 from 1.6 percent in 2009, around twice the rate of that found in North America (which held steady from 2009 to 2010 at .9 percent). CyberSource experts said likely causes for the higher rate in the U.K. include the greater incidence of cross-border e-commerce within the European region and the fact that fraudsters, facing stiff anti-fraud measures in one location, direct their efforts elsewhere, including the U.K.  ”U.K. merchants have long been more internationally focused,” said Akif Khan, director, products and services for CyberSource. “The share of U.K. merchant revenue derived from international online orders is about 50 percent higher than that of North American merchants. And year after year, CyberSource surveys show the fraud rate associated with international orders is higher.  More generally,” Khan continued, “as e-commerce becomes more global, fraudsters can easily migrate from one location to the next.”