Internet Credit and Debit Card Fraud is 'underestimated'

According to new figures released by the BBC, internet credit and debit card fraud in the UK is a much bigger problem than it was previously thought. This makes it essential for small businesses with ecommerce websites to ensure that they are offering their customers a secure online payment method. Failure to do this could reduce online sales or even damage your reputation as a business.

The Rise of Internet Crime

Data obtained from the banking industry indicates that card losses from internet, phone and mail order crime amounted to a massive £290.5m in 2007. However, the BBC statistics showed that this amount could amount to as much as £500m if failed attempts at internet crime were also taken into account. These statistics add weight to the Tories’ argument that the government should appoint a minister to deal specifically with internet crime. However, government ministers have already stated that they have invested a significant £29m towards the fighting of online crime and they have also vowed to work with the banking industry in order to encourage online retailers to adopt more anti-fraud devices.

Undercover Investigation

The BBC figures were obtained after BBC News underwent an undercover operation into credit card fraud, which revealed just how simple it was to gain access to stolen credit and debit card details online. During the undercover investigation, two BBC journalists posed as computer hackers in order to infiltrate a website that sold thousands of credit card details that were stolen online from small retail businesses. The journalists obtained the details of these stolen cards and when they were used, they traced the transactions to a number of UK addresses. It is thought that the BBC has now passed this information on to the police.

Getting Away with It

Andrew McClelland, a spokesperson for the Interactive Media in Retail Group (IMRG), which is an organisation that represents online retailers, said that these statistics showed that despite the online marketplace making a significant contribution to the UK economy, it was still too easy to commit fraud and other crimes on the internet. He said: “If you're committing a crime online then there is a high probability that you'll get away with it and even if you are caught a fairly high probability again that the punishment won't be that severe.”

Fraud Prevention and Protection

Until the government decide to do more to combat the ever-increasing problem of internet fraud, one of the only ways to help prevent it is through responsible retailing. Therefore, in order to better protect their customers from credit and debit card fraud on the internet, small businesses should ensure that their ecommerce websites are as safe and secure as possible.

Source:

BBC