CyberSource: 2013 Online Fraud Report

cybersource

Highlighting fraud trends

In 2012, companies reported losing an average of 0.9% of total online revenue to fraud, similar to 2010 levels. Using 2012 industry market projections on eCommerce sales in North America, CyberSource estimates total revenue loss translates to approximately USD3.5bn. Because the size of the overall market has grown, the revenue loss equates to USD100, 000,000 more versus 2011. 

Although the fraud rate by revenue has gone down, the fraud rate by order increased from 0.6% in 2011 to 0.8% in 2012. The average ticket value for a fraudulent order was USD200, approximately 1/3 higher than a valid order (USD149).

For the 54% of survey respondents that accept international orders, the fraud rate for orders outside of North America was twice as high – 1.6%. With international sales comprising 14% of overall orders (and even more so for the largest companies), fraud management mitigation strategies will need to be closely monitored and scrutinised.

Click here to read the full report.

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