| Online fraud is becoming a major threat for the | | | | threat to the eCommerce is the rejection of valid |
| growing eCommerce industry, not only in US but also | | | | orders by online retailers. This is done because of the |
| globally. As eCommerce is growing, managing online | | | | fear of fraudulent orders. The overall order rejection |
| sales is becoming a big challenge for online retailers. | | | | rate has been increasing over the past 3 years, from |
| According to Cyber Source Corporation's report, the | | | | 3.9% in 2005 to 4.1% in 2006 and 4.2% in 2007.o It is |
| percent of revenue loss because of online fraud is | | | | also found that the percentage of orders accepted by |
| decreasing, but the actual total value of dollar loss | | | | online merchants but later determined to be fraudulent |
| resulting from online payment is increasing by 20% a | | | | is growing. It is 1.3% in 2007 compared to 1.1% in 2006.o |
| year. The survey is conducted on US and Canada | | | | The number of order rejections is increasing |
| online markets.o The revenue lost due to online fraud | | | | corresponding to the people using eCommerce globally. |
| decreased from 3.6% in 2004 to 1.4% in 2007, but the | | | | Online merchants are reporting that international order |
| total value of dollars lost due to online payment is | | | | rejecting rate for 2007 is 11%, that means two and half |
| increased by 20% a year. That means the loss has | | | | times higher than domestic rejection rate, which is |
| grown from $1.5 billion in 2004 to $3.6 billion in 2007.o | | | | 4.2% that includes the online markets of US and |
| Chargebacks forms the major part of the online fraud. | | | | Canada. |
| Usually, a chargeback occurs when a buyer asks their | | | | Online retailers are facing revenue losses in different |
| credit card company to remove a charge from their | | | | ways due to online fraud. In order to cut down fraud |
| credit card statement. The average percent of total | | | | significantly and to reduce its impact on eCommerce |
| chargebacks account for 47% in the entire online fraud | | | | industry, end-to-end technology solutions, awareness |
| in 2007 down from 53% in 2006. But the rate is high | | | | among the online retailers and the online buyers are |
| when compared to 43% in 2005. The value of | | | | required. |
| chargebacks account for $1.7 billion in 2007.o Another | | | | |