Increased Fraud Concern This Holiday Season Underscored in Survey of Leading E-Commerce Fraud Professionals
41st Parameter survey shows current economic conditions expected to fuel fraud growth; two-thirds of participants cite fraud rings as chief concern
SCOTTSDALE, Ariz., Nov. 25 (AllPayNews.com) -- 41st Parameter(R) Inc., the leading provider of Internet fraud intervention and detection services and technology, today announced survey results from a recent event sponsored by the Merchant Risk Council (MRC). Findings indicate fraud and risk management experts from leading e-commerce companies believe current economic conditions will yield increased online fraud activity this holiday season. When asked about their top fraud fighting challenges, 67% identified fraud rings and botnets as key concerns.
41st Parameter conducted the survey during a joint webinar with the Merchant Risk Council on November 19, 2008, which included two FraudNet customer panelists. There were over seventy-five loss prevention specialists in attendance, comprised mostly of MRC members, representing over forty of the top online merchants.
Results highlight how online fraud continues to be an issue across most e-commerce organizations. Universal sentiment clearly indicates fraudulent activity tends to follow particular patterns and preys off current events. Survey findings include:
When asked: "How do you expect current economic conditions to impact attempted online fraud at your company this holiday season?"
84% of respondents indicated they anticipate a slight or substantial
increase in fraudulent activity.
When asked: "What do you see as the biggest challenge when fighting online fraud?"
67% (two-thirds) of the respondents stated increased fraud ring activity
and botnets are of chief concern.
An alarming 30% cited lack of funding to secure better fraud fighting
technology as their primary challenge.
"As the Global economy continues to slow down, organizations are slashing budgets across the board, including vital IT needs designed to help protect the bottom-line," said Ori Eisen, chief innovation officer, 41st Parameter. "What's particularly alarming about this counter-intuitive strategy is roughly one-third of e-commerce fraud investigators surveyed said their number one challenge is not receiving adequate funding to procure proper fraud prevention technology, thereby leaving their online channel a key target for cybercrime."
Results from other survey questions were inconclusive, including 50% responding they expected an increase in online sales this holiday season, as opposed to the other half of respondents stating they anticipate flat or decreased comp sales.
As for CyberMonday, a mere 11% expected a significant percentage of holiday sales activity to come from one day, whereas the majority anticipate a steady distribution, including fraud attempts, throughout the holiday season.
To view the joint-hosted webinar from the MRC and 41st Parameter titled, "When The Economy Slows Down, Fraud Speeds Up," request the replay link from: http://www.the41st.com/MRC
About 41st Parameter
41st Parameter is the leader in fraud intervention, providing proven solutions to protect company brands and customers, reduce fraud losses and make the Internet a safer place to conduct business. Through a combination of risk management and loss prevention experience, and leading technology coupled with human interaction and best practices, 41st Parameter's solutions provide an unprecedented level of detection capability, decreasing the anonymity of the Internet and providing valuable insight to every online transaction and customer interaction. 41st Parameter makes the process of detecting and preventing fraud easier and more effective, reducing both expenses and potential losses. For more information, visit http://www.the41st.com.
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Tim Whitman or Tara Mulloy
SOURCE 41st Parameter Inc.