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In July 2007, monthly UK Internet shopping sales rose above £4 billion (US$8 billion) for the first time ever.But the growth in online shopping is being accompanied by a corresponding rise in Internet fraud, a survey reveals.
In July 2007, UK Internet shopping rose by 80 percent to £4.2 billion from £2.34 billion in July 2006, IMRG reports. The UK e-retail trade association says wet weather in July and rising usage of broadband Internet connections were the main reasons for the surge in Web sales that month.
The growth in cyber-crime is costing the UK's online retailers around £580 million a year,
according to a survey by IMRG and prepaid Visa voucher supplier 3V.
Research carried out by 3V and IMRG shows that almost two thirds (64 percent) of UK Internet retailers have fallen victim to fraudsters. For some e-retailers, fraud is costing them as much as 5 percent of their annual revenues.
The introduction of chip-and-PIN cards at the point of sale in the UK has contributed to the growth in online fraud. Since 2005, UK cardholders have had to use a PIN when making credit or debit card purchases in stores, which has led to a big drop in card-present fraud. Consequently, fraudsters have been forced to target Internet and other types of card-not-present transactions, IMRG and 3V say.
Over a third (36 percent) of UK e-retailers have experienced a marked increase in fraudulent activity online since the introduction of chip-and-PIN, the survey reveals.
