Cyber-fraud is costing retailers an estimated 580 million pounds per year - a figure, which could surge almost three-fold by 2010, says a new report. Almost two-thirds of online merchants have been affected by Internet fraud, losing on average three percent of their turnover, according to research by pay-as-you-go Visa voucher firm 3V.
With figures from retail body IMRG suggesting that annual online sales could surge to 78 billion pounds over the next three years, cyber fraud could cost retailers 1.5 billion pounds per year by 2010 if the current trend continues.
More than a third of retailers have experienced a marked increase in fraudulent activity online since the introduction of chip and PIN on the high street, the survey found.
And 43 percent of retailers said the prospect of being hit by fraud is becoming a growing concern by the day. Andrew McClelland, director of projects and marketing at IMRG, said: "The research from 3V highlights just how serious the problem of Internet fraud has become for the online retail industry. "While the industry is rapidly expanding it obviously provides a tempting target for fraudsters."
Two-thirds of retailers are increasing security measures on their sites, but one fifth said systems introduced by payment providers to combat fraud are placing a growing burden on the consumer - like the need to remember multiple passwords.
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