Chart of the Week: Online Fraud Cost Merchants $4 Billion in 2008

Revenue loss from ecommerce fraud rose 8 percent in 2008 to $4 billion, matching the overall growth in online sales, according to a new study.

Although ecommerce fraud as a percentage of total sales was flat at 1.4 percent in 2008, total online sales actually grew so that the absolute revenue lost increased from $3.7 billion in 2007 to the aforementioned $4 billion in 2008, according to the Mindwave Research study conducted for the Merchant Risk Council, a merchant-led trade association focused on electronic commerce risk and payments globally, and sponsored by CyberSource.

The survey also sought to compare Merchant Risk Council members’ rates of fraud loss and transaction acceptance to the rates for non-members.

Armando Roggio

Armando Roggio

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