40% of US retailers had no online fraud prevention strategies in 2012

Worrying levels of negligence

According to ThreatMetrix, although 85% of retailers consider online fraud prevention a high priority, statistics suggest that 40% have not implemented any sort of fraud prevention strategy. The 2013 report revealed that online fraud caused approximately USD3.5bn in revenue losses across North America last year.

Trojan and phishing attacks are the most common for retailers to experience, with 46% being subjected to at least one malware attack during, and 46% to one Trojan attack during 2012. Despite the very real threat of such attacks, many retailers spend very little time researching the various IT security threats in order to protect their business. The report suggests that 47% of retailers questioned in the survey spend less than five hours researching security threats each month, and 14% spend no time at all.

Adam Baumhof, chief technology officer at ThreatMetrix, said, “Retailers need to improve online fraud and cybercrime prevention practices or risk losing customers and revenue. When consumers are hacked on e-commerce sites, they often avoid those merchants in the future. By implementing integrated cybercrime prevention solutions, e-retailers can provide a more secure experience for customers.”

A SmartDebit spokesperson commented, “The number of US retailers surveyed that do not have any sort of prevention strategy in place is worrying. However, the figure may not be too dissimilar to the UK, as businesses were subject to GBP250m in lost revenue as a direct consequence of cybercrime in 2012.” He continues, “We urge all organisations operating online to review their procedures on a constant basis, securing your business is on-going process.”

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