Online card fraud poses major problem

It appears fraudsters are shifting their tactics online even in advance of the migration of in-store POS to EMV compliance.



The U.S. Retail Fraud Survey 2015 has reported a substantial increase in online credit card fraud. Published by Retail Knowledge and sponsored by cash handling technology provider Volumatic, the survey shows the biggest area of online loss remains, overwhelmingly, from the fraudulent use of credit cards (66%).



The cost of online credit card fraud to retailers is an estimated $1.88 billion. Currently, online sales account for an average of 6% of sales. In the next three years, retailers are estimating to achieve 15% of sales to be made online.



In addition, while retailer spending on online fraud prevention has doubled in the last two years, 58% of them are still more concerned about the ability of monitoring and analytics to deal effectively with the fraudsters by identifying and stopping them.