Who is the biggest victim of the problems related to the use of credit cards when he or she purchases on the Internet? Consumers? Merchants? Credit card companies? Most people believe that consumers are major victims. However, E-merchants may suffer more seriously than consumers and credit card companies.
According to Meridien Research (http://www.meridien-research.com),
1) Online credit card fraud may cost $9 billion in 2001
2)
Widespread use of anti-fraud technology will reduce online payment fraud to $5.7
billion by 2005, down from a potential $15.5 billion
3) Internet credit card fraud constitutes 10% of all Internet sales in 1999. Without intervention, Internet fraud will cost U.S. merchants $30 billion by 2005
Consumers’ fears:
The
chart below entitled "Fraud
fears" shows what has prevented people from making a purchase online (See
the chart below) .
Organization:
The
NFIC (National Fraud Information Center) accepts reports about attempts to
defraud consumers on the telephone or the Internet.
NFIC online
incident report form http://www.fraud.org/info/repoform.htm
