InsideRetail recently reported that card-not-present fraud – that is payments made via card where the cardholder is not present – will cost retailers US$130 billion globally over the next five years.
According to a study by Juniper Research, the slow rate that retailers’ are addressing fraud will allow the criminal practice to become more widespread.
The report’s author Steffen Sorrell said: “A layered fraud detection and prevention (FDP) solution naturally helps directly preventing fraud, but it also offers major gains in terms of recovering potentially lost revenue through false positives.”
“This is something about which retailers remain undereducated, and has allowed fraudsters to capitalise on relatively low FDP spend,” Mr Sorrell said.
InsideRetail reported that a lack of understanding around fraud prevention and investment return, is the reason for low uptake of the technology.