According to CyberSource’s “2013 Online Fraud Report,” online fraud resulted in approximately $3.5 billion in North American revenue loss in 2012. Given this revenue loss, the 40 percent of retailers who do not have fraud prevention in place are taking a major gamble on the security of their profits and sensitive customer transaction and financial data.
The most common IT security attacks retailers experienced in the last year are malware, Trojan and phishing attacks. Of the retailers surveyed, 46 percent experienced at least one malware attack in the past year, and 45 percent experienced at least one Trojan attack.
Despite these attacks, retailers barely spend any time researching IT security threats to stay ahead of cybercriminals. Nearly half (47%) of retail organizations surveyed spend less than five hours researching security threats each month, while 14 percent spend no time on preventative research.
“Retailers need to improve online fraud and cybercrime prevention practices or risk losing customers and revenue,” said Andreas Baumhof, chief technology officer, ThreatMetrix. “When consumers are hacked on e-commerce sites, they often avoid those merchants in the future. By implementing integrated cybercrime prevention solutions, e-retailers can provide a more secure experience for customers.”
In an effort to provide the safest transactions for consumers, retailers need to:
• Screen transactions using previous transaction data to make better decisions about account takeover attacks. By tracking devices and accounts that have a history of fraudulent activity, retailers can block those devices from transactions. • Track transactions that are originating from a different country or IP address than where the account was created. • Screen for customer identification verification at both account login and prior to transaction completion.
The study, titled the ThreatMetrix 2012 State of Cybercrime Study, was conducted by Info-Tech Research Group and surveyed U.S. business managers and IT executives within retail and financial services organizations on the level of cybersecurity solutions they have in place.
For more information on this study, download the full report at http://info.threatmetrix.com/ThreatMetrix_Security_Online_Fraud_Prevention.html About Info-Tech Research Group
With a paid membership of over 28,000 members worldwide, Info-Tech Research Group is the global leader in providing tactical, practical information technology research and analysis. Info-Tech Research Group has a 14-year history of delivering quality research and is North America’s fastest-growing, full-service IT analyst firm. For more information, visit www.infotech.com or call 1-888-670-8889.
About ThreatMetrix ThreatMetrix is the fastest-growing provider of integrated cybercrime prevention solutions. The ThreatMetrix™ Cybercrime Defender Platform helps companies protect customer data and secure transactions against payment fraud, malware, account takeover, fraudulent new registrations, data breaches, as well as man-in-the browser (MitB) and Trojan attacks. The platform consists of advanced cybersecurity technologies, including TrustDefender™ ID, which is cloud-based, real-time device identification, malware protection with TrustDefender™ Cloud and TrustDefender™ Client, as well as TrustDefender™ Mobile for smartphone applications. ThreatMetrix cybersecurity solutions protect more than 1,500 customers and 8,500 websites across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government, and insurance. For more information, visit www.threatmetrix.com or call 1-408-200-5755.
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