July 30, 2013

An estimated $3.5 billion was lost to online fraud (chargebacks and issued credits) in 2012, according to a new study released by online payment processor Cybersource. And even though the average fraud-by-revenue rate dropped .01% from 1% to 0.9%, the fraud-by-order rate increased from 0.6% to 0.8%. Moreover, international sales had a fraud twice as high at 1.6%. The average fraudulent charge was $200, averaged over both digital goods and services and physical products and merchandise.…