Retail Systems: Tech spend fuels reduced card fraud06-Jun-2014
Online credit card fraud is down eight per cent since last year, according to the 2014 UK Retail Fraud Survey, sponsored by Kount. The survey, which looks at the systems, processes and strategies of 100 of the UK’s top retailers, shows online fraud prevention spend has increased from 0.3 per cent of sales in 2012 and 0.4 per cent in 2013, to 0.43 per cent this year. And there has been a decrease in shrink in online credit card fraud from 51 per cent in 2013 to 43 per cent in 2014.
Don Bush of Kount comments: “E-commerce grew a healthy 18 per cent in 2013, cybercrime grew at about 23 per cent in the same period which greatly emphasises the need for a robust online loss prevention strategy. Detecting, preventing and managing fraud is a full time vocation and getting the people, processes and technology right to beat fraud is crucial.”
Many of the other areas of online loss, however, saw an increase in shrink since last year. Third party fraud payments rank next at 15 per cent of shrinkage, an increase of 4 per cent since last year. Accounting for 13 per cent of loss is card testing which has seen an increase of 3 per cent. Friendly fraud has seen no change since last year and remains at 9 per cent. Internal fraud online is much lower than employee theft from stores, as physical access to products is limited to warehouse staff only.
Written by Scott Thompson for Retail Systems.