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Basics: Fraud on the Upswing |
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The holiday season may bring increased sales volume for merchants and growing revenues for independent sales organizations (ISO), but it also will bestow another gift in the form of heightened fraudulent activity.
“Between the lackluster economy tempting people to commit fraud to fund their shopping and the growing ease of access to massive volumes of credit card information, there’s no question” that industry players “must prepare for more hits,” says Randy Lobban, director of risk management at North American Bancard. E-commerce is expected to take a particularly hard hit, according to a survey by CyberSource, a provider of electronic payment and risk management solutions.
The survey indicates that dollar losses from e-commerce fraud continue to grow, with fraudsters expected to divert approximately $3.6 billion from U.S. e-commerce in 2007, a 20 percent increase over 2006. Not surprisingly, the period from Black Friday (the day after Thanksgiving) to December 25 is the most significant hotbed of such activity.
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