| With the additional security of offline card transactions | | | | between just them and their card issuer. |
| in the form of chip and pin, online fraud has rocketed. It | | | | While initiatives like these are great, it still leaves the |
| continues to grow as more fraudsters move online to | | | | online business open to many fraudulent operators, |
| target a growing audience with the added benefit of | | | | which result in fraud business costing billions of pounds |
| less risk and possible anonymity from their scams. | | | | each and every year. While card transactions are |
| Credit card fraud is massive and said to account for | | | | approved it only means that the card is being used on |
| approximately 10 to 20 per cent of all online orders. | | | | a site is live and not stolen, has sufficient funds but |
| This is a huge threat for many businesses since credit | | | | does not guarantee payment. The risk is the card may |
| card payments are their primary payment method | | | | be used as part of a fraud scheme being stolen from |
| therefore the risk is very high for them. Online card | | | | the legal owner which means the money will be gone |
| transactions are all labelled as "Card Not Present" | | | | forever. |
| (CNP) transactions. With banks now passing the risk of | | | | There are many ways that fraudsters can get hold of |
| fraudulent CNP transactions over to retailers, since | | | | your card details to use fraudulently, from identity theft, |
| they won't guarantee card payments without PIN | | | | customer data hacks on sites or even your site and |
| number entered, the risk of fraud has never been | | | | various other methods in between. The |
| greater. | | | | recommendation would be to invest the time and |
| Thankfully there are a number of initiatives to attempt | | | | some money in attending the next Marcus Evans |
| to reduce online card fraud. Credit card companies and | | | | fraud seminar, businesses online need protection and |
| banks have introduced password systems where the | | | | it's a small price to pay compared to the potential hole |
| customer is passed onto a secure bank system to | | | | it can leave in company finances. |
| enter a password at the end of checkout, which is | | | | |