| cl | | | | experience an untold incident of fraudulent purchases, |
| A top concern for any online merchant is consumers | | | | and often have no recourse but to eat the costs |
| making fraudulent purchases from their website. | | | | associated with these charges. In the 2007 |
| According to the Internet Crime Report (IC³), there | | | | eCommerce Chargeback report, 65% of online |
| were 275,284 incidents of Internet fraud reported in | | | | merchants automatically refunded about 46% of all |
| 2008, up 33.1% from 2007. (Internet Crime Report: | | | | manually reviewed orders (eCommerce Chargeback |
| 2008, 1). The monetary loss to both consumers and | | | | Report: 2007, pg 3). The problem for digital delivery |
| businesses for that same year was estimated to be | | | | merchants is that they suffer not only from loss of |
| $264.6 million. In an ever-evolving Internet market, online | | | | revenue on these types of fraudulent purchases, they |
| merchants must be vigilant in protecting themselves | | | | also suffer the loss of intellectual property, loss of time |
| from savvy scammers. | | | | in reviewing each individual order, and any associated |
| While Internet fraud has been measured by IC³ | | | | chargeback fees. In the past there has been no |
| since 2000, digital download delivery merchants | | | | resource for proving delivery of digital goods. |