Anti-Fraud Technologies Will Save Billions
A new report from Meridien Research reports that the battle against credit- and debit-card fraud on the Web is being fought successfully. "Online Card Payments: Fraud Solutions Bid to Win" found that fraud is being thwarted by a range of new technologies online merchants are adopting.
The study predicts that without investment in technology, Internet payment fraud worldwide would increase from $1.6 billion in 2000 to $15.5 billion in 2005. But Meridien forecasts that widespread use of technology will cut the 2005 loss to $5.7 billion. Global Internet card purchases will rise from $45 billion in 2000 to more than $310 billion in 2005, the firm said.
This good news could eventually affect interchange rates. Analyst Jeanne Capachin said, "Card fraud on the Web is declining because these solutions work well and also because merchants have gotten smarter. With wider adoption, we could eventually see online fraud rates consistent with those of telephone-initiated transactions."
"Online Card Payments: Fraud Solutions Bid to Win" covers eight vendors that offer card-fraud detection solutions. Meridien Research of Newton, MA, provides analytical research services to users and providers of financial industry technology. For more information visit www.meridien.com.
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