Survey finds that retailers do little to combat online credit card fraud

Internet Business News, Sept 15, 2000

INTERNET BUSINESS NEWS-(C)1995-2000 M2 COMMUNICATIONS LTD

A new survey by the credit rating agency Experian has found that many online retailers do not make basic checks on buyers using credit cards.

Experian surveyed 800 UK companies that traded online and found that just 57% of them reported fraud cases to the police. Of these, over half found that the police were not interested in following up the matter, according to the BBC. Of all the fraud cases reported, only 9% led to a prosecution. The survey suggested that nine out of ten fraudsters were getting away with their crime, said Richard Fiddis of Experian UK.

Experian also found that almost a half of all online retailers did not use external data to verify that the shopper was actually the credit card holder and only 15% used automated systems to make identity checks.

The complete findings of the survey can be found at http://www.experian.com.

((Comments on this story may be sent to info@m2.com))