Card Fraud Statistics

prhost · Post #1 (**permalink**) 03-23-2005, 11:49 PM

An extract from the Varilogix newsletter earlier this month...interesting.

Quote:

Card Fraud Statistics

According to some industry analysts, fraud costs USA ecommerce merchants over 2.6 billion dollars during 2004.

Overall rejected orders total about 70-80% on all worldwide internet transactions over the period of a year. In the U.S., Australia, Canada, British Isles & western Europe about 50%. Orders from countries in some eastern European countries such as Romania, etc. are 100% fraudulent.

When we read about credit card fraud from the merchant's perspective, the numbers mentioned are usually figures showing transactions that result in a chargeback fee to the merchant - they don't tend to reflect the attempted frauds.

Lucky for our clients they will not become part of the statistics anymore. Many VariLogiX users have had noticeable results after implementing the FraudCall service. Most users report a decline as much as 100% drop off of fraudulent orders and chargeback?s.

Talkfreelance · Post #2 (**permalink**) 03-24-2005, 01:33 PM

Alarming statistics, the Internet has created some very money hungry individuals and alot of fraud. 70-80% is very high, at least we have some great security in place to counter these fraud attempts

qwidjib0 · Post #3 (**permalink**) 03-24-2005, 01:56 PM

We get TONS of fraudulent orders. If you order a server from us now you can pretty much expect a verification phone call. It's not quite 70-80%, but I would say upwards to 50% of the time the person sitting at the other end of the contact info we get has no idea they've ordered a server..

Talkfreelance · Post #4 (**permalink**) 03-24-2005, 01:58 PM

Damn! You know, when I ordered my account with boxedart.com they called me from America (I live in england) to verify my order, I thought that was pretty cool.

talkwebhosts.co · Post #5 (**permalink**) 03-24-2005, 02:30 PM

Quote:

Originally Posted by robson

Damn! You know, when I ordered my account with boxedart.com they called me from America (I live in england) to verify my order, I thought that was pretty cool.

I have not used my boxedart account in a very long time lol! I feel like I wasted money on it.

As far as fraud it is sad but most of the orders coming from Singapore are fraudulent. I know of people that have run Yahoo stores who sell a trickle of product each month. Then all of a sudden a huge order comes in and they get excited. I always ask them did you verify the order? Then they find out it was fraud!