The findings of CyberSource's survey of 200 UK businesses reveals that the top three fraud risks that respondents were most concerned about are clean fraud (88%), account takeover (86%) and fraud on orders placed using alternative payment methods (80%).
Clean fraud and account takeover rely on the fraudsters being able to accurately impersonate genuine customers having garnered all the information they need. According to CyberSource's 2016 UK eCommerce Fraud Report, as long as businesses cannot confidently distinguish fraudsters from genuine customers, they'll find it difficult to maximize genuine revenue while minimizing fraud losses.
The survey also found that just five out of 21 fraud detection tools are used by more than half of the respondents. Of those, 3 (CVN, AVS and postal address validation) are the most familiar to sophisticated fraudsters and the most easily circumvented with stolen data. Tools that are better suited to combatting sophisticated fraud, such as two-factor phone authentication, multi-merchant data and device fingerprinting, were found to be in use by less than a quarter of survey-takers.
With ecommerce forecast to grow by 10% in the UK over the next few years, issues surrounding online fraud are not going to go away. However, according to the study, two-thirds of businesses do not intend to spend more on fraud detection over the next 12 months.
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