US: 40% of retailers with no online fraud prevention strategies in 2012 - report

Friday 22 March 2013 10:26 CET | News

In 2012, 40 percent of US retailers have had no online fraud prevention strategies in place, while 85 percent have considered online fraud prevention a high priority, recent statistics indicate.

According to ThreatMetrix’s 2012 State of Cybercrime Study, conducted by Info-Tech Research Group, the 40 percent of retailers who do not take fraud prevention measures are at a high risk when it comes to the security of their profits and sensitive customer transaction and financial data. Especially, taking into account the fact that in 2012, revenue losses due to online fraud have amounted to almost USD 3.5 billion in North America, as a report by CyberSource finds.

The ThreatMetrix research points out that the most common IT security attacks retailers have experienced in 2012 include malware, Trojan and phishing attacks. Data shows that 46 percent of retailers have experienced at least one malware attack in the past year and 45 percent experienced at least one Trojan attack.
However, the same source unveils that despite these attacks, retailers barely spend any time researching IT security threats to stay ahead of cybercriminals. Almost half (47 percent) of retail organizations surveyed have spent less than five hours researching security threats each month, while 14 percent have spent no time on preventative research.

The report also mentions several measures retailers should take, in an effort to provide the safest transactions for consumers:
• Screen transactions using previous transaction data to make better decisions about account takeover attacks. By tracking devices and accounts that have a history of fraudulent activity, retailers can block those devices from transactions;
• Track transactions that are originating from a different country or IP address than where the account was created;
• Screen for customer identification verification at both account login and prior to transaction completion.

The study is based on a sample of US business managers and IT executives within retail and financial services organizations and it analyzes the level of cybersecurity solutions they have in place.

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Keywords: fraud prevention, online fraud, ThreatMetrix, US
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime