E-Commerce Fraud Growing And Growing
from the so-it-goes dept
The latest study (of course, from a security company trying to sell solutions, so note the bias) about e-commerce fraud suggests it’s rapidly increasing, up almost 40% since last year to more than $2.6 billion. Of course, the rate of growth of online commerce is outpacing that, so fraud isn’t growing out of proportion to the percentage of overall growth, making the report seem a lot more alarmist than it really is. The report also suggests that the percentage of revenue lost to fraudulent sales will rise from 1.9% last year to 2.5% this year for small to mid-sized businesses, while larger companies are only losing about 1.1%, down from 1.3% last year. Of course, those aggregate numbers are somewhat meaningless. You don’t know if there are just a few companies losing a lot, or it’s a really even distribution and that makes quite a big difference.