ThreatMetrix Study Finds Nearly 40 Percent of Retail Organizations Have No Online Fraud Prevention
Posted March 21, 2013
Despite Lack of Fraud Prevention for Most, 85 Percent of Retail Organizations Consider it a High Priority
San Jose, CA – March 21, 2013 – ThreatMetrix™, the fastest-growing provider of integrated cybercrime prevention solutions, today announced the results of a study, which found that 40 percent of retailers have no online fraud prevention in place, despite 85 percent considering online fraud prevention a high priority.
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.
ThreatMetrix®, The Digital Identity Company®, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying more than 20 billion annual transactions supporting 30,000 websites and 4,000 customers globally through the ThreatMetrix Digital Identity Network®, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches. Key benefits include an improved customer experience, reduced friction, revenue gain and lower fraud and operational costs. The ThreatMetrix solution is deployed across a variety of industries, including financial services, e-commerce, payments and lending, media, government and insurance.