< Back to previous page

68% of e-businesses 'daunted by fraud'

Published on 2 Jun 2009 under category: legal

More than two thirds of companies say that the risk of fraud crimes is the most daunting element of operating an e-business, a study finds.

Research by Sage Pay has suggested that this fear will have a strong impact on the future of online retail, highlighting the value of fraud solicitors.

Simon Black, the company's managing director, claims that this type of crime continues to pose a significant threat for business holders.

He suggests that only a third of these firms understand the Payment Card Industry Data Security Standard and its ability to cut the chances of this type of fraud.

"It's essential that retailers demonstrate the importance of online payment protection by taking a series of straightforward steps to protect themselves and their customers," he asserts.

Dan Hyde, Cubism Law added: "E-businesses need to identify and guard against crime, in this case fraud, in the same way traditional brick and mortar retailers employ security guards, CCTV and other systems to protect against theft and fraud. If a consumer fears the payment process is not secure or at risk of fraud the business will lose potential custom. An e-business must recognise that internet fraud will likely replace traditional shoplifters but the same principals apply ie ensuring the business and the customer is protected. The implications for both the customer and the business could be far reaching and devastating if appropriate measures are not in place. The cost of these measures should be an integral part of any business plan."

A spokesman for CyberSource recently claimed that online fraud crime is a part of life for businesses trading over the internet and called for companies to examine the total cost to them.