Five per cent of all ecommerce transactions are fraudulent, with the most common types of activity being the use of stolen credit cards, false identities and card generators.
According to a survey of 100 retailers ranging from hardware manufacturers such as Compaq and Samsung, to banks and online companies, 41 per cent of respondents did not realise that merchants themselves were also responsible for online fraud, however.
William Donahoo, vice president of marketing at Cybersource, said: "The survey findings demonstrate that online fraud is a serious issue that needs to be addressed."
He added: "The key to tackling and inhibiting online fraud is to understand how it affects a merchant, and to put adequate controls in place to identify and prevent it from occurring, while maximising the acceptance of valid orders."
The majority of retailers also saw online fraud as a serious problem and viewed lack of consumer confidence as their number one concern.
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