Will Web Card Fraud Fade?

• Posted: Saturday, June 07, 2008
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• Author: pradhana
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• Filed under: Miscellaneous

Pinning hopes on new types of online security

The number of consumers in the US who have had their credit or debit cards used fraudulently to make online purchases will increase through 2010 before decreasing, according to Javelin Strategy & Research's "2008 Identity Fraud Forecast" report.

The research company did not make its 2008 number available to the public, but predicted there would be 2.7 online card fraud victims in 2010, up from 2.3 million in 2007.

Rachel Kim, an analyst at Javelin, told eMarketer that online payment fraud would start to decrease after 2010 thanks to a couple of security measures.

Device recognition is already commonly used by many online banking sites. The security measure identifies when a consumer accesses a site via a computer he or she has not used before. The retailer then asks for additional proof of identity.

Major credit and debit card associations Visa and MasterCard have also created security systems to ascertain online consumers' identities. Ms. Kim said consumer adoption had been slow and suggested online retailers offer incentives to increase use.

Read more - eMarketer

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