Cybersource recently completed their 10th annual survey of online fraud trends, merchant practices and benchmarks covering 2008.
The following is a summary of the key points:
- Fraud losses reached $4 Billion in 2008
- Online merchants incur 1.4% avg of revenue in fraud losses
- Online merchants rejects 3.0% avg of orders due to fraud concerns
- International losses and rejects are 3.5 times domestic
- Chargebacks account for 50% of fraud losses
- Credit for fraudulent transactions accounts for 50% of fraud losses
- 25% of orders are manually reviewed to check for fraud
Merchants are using the following techniques to check for fraud:
| Technique | % Using |
| AVS | 78 |
| CVN | 74 |
| Order History | 47 |
| Physical Address check | 35 |
| Geo Location check | 35 |
| SecureCode | 27 |
| Phone reverse lookup | 25 |
| Public records | 11 |
| Credit Report | 05 |
| Device Fingerprint | 05 |
