Online retailers lost USD 3.5 bln due to fraud in 2013 - Trustev

Tuesday 15 April 2014 10:43 CET | News

In 2013, online retailers lost USD 3.5 billion in sales through avoidable fraud, according to the first Global Fraud Briefing from Trustev, a provider of identity verification.

The same source mentions that as of April 2014, more than 250 million compromised credit-card numbers are being offered for sale online, a growing threat that is causing major losses for both retailers and consumers.

According to Pat Phelan, CEO of Trustev, the modern fraud industry is entirely data driven, but until now its been hard to know just how much risk retailers are facing. Most companies affected by fraud are incredible secretive.

Results indicate that in fraud detected across the Trustev network, more than 37% involved attempts to hide or obscure the location behind the transaction. As more and more transactions go mobile, it’s getting harder for merchants to tie down accurate transaction locations. Furthermore, compromised devices and automated behaviours were detected in over 34% of all fraud attempts, highlighting the need for consumers to better protect themselves.

Trustev uses online identity verification to prevent fraud in ecommerce transactions by focusing on validating the individual making the transaction, not just the payment method they are using. The platform delivers decisions using multiple dynamic data sources including behavioural, transactional and social instead of restrictive rules-based decisioning and profiling.

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Keywords: online retailers, online fraud, Trustev, identity verification
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime

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