Posted by Andre Edelbrock on Tue, Jun 08, 2010
The U.S. Federal Trade Commission estimates that six times as much revenue is lost to "fear of fraud" as to actual fraud
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How making online shopping safer means a more profitable online environment for all
Beyond the total cost of fraud you may face today, there is an even bigger challenge: many potential customers are afraid to buy online. They don’t think it’s safe.
In fact, six times as much revenue is lost each year to fear of fraud than to actual fraud, according to the U.S. Federal Trade Commission.
That number is consistent with surveys and research by other organizations as well. VeriSign says half of Internet users avoid buying online, for fear of their financial information being stolen. And of those who have been victims of fraud:
- 12% don’t shop online any longer
- 25% shop less frequently
- 19% spend less when they do shop online
And according to figures from a CyberSource 2009 survey:
- 71% of consumers are concerned with the level of risk when shopping over the web, an increase of 5% over 2008
- 24% of consumers (the largest grouping of answers) say it is merchants’ responsibility to make online shopping safe
Making online shopping safer -- It's within your control
Trust seals can and do increase the perception of safe shopping for many. They, however, can only go so far, and with constant media attention paid to massive data security breaches such as those perpetrated against Heartland Payment Systems, TJ Maxx, Hannaford Supermarkets and many others, not to mention the myriad tales of unscrubbed and unprotected data on used hard drives, archival tapes full of social security numbers and other personally identifiable information falling off the back of trucks, consumers are rightly fearful that no matter what they or merchants do to protect their data, there are weak links in the security chain that put them at risk.
In fact, there are 3 elements to making Internet shopping not only as safe as it can be, but truly the safest form of shopping. First, merchants need to implement proper security precautions, especially PCI compliance. Second, compliance needs to be regulated and certified (and advertised by the accompanying trust marks). Finally, merchants need to ensure that in the event security is breached, that minimal harm comes to the consumer. The best way to do that is through collaboration with other merchants, as well as card issuers, fraud vendors, payment service providers - in fact, all the stakeholders in ecommerce.
The Global Fraud Alliance is that third and critical piece in making internet shopping safer. It provides a shield against misuse of breached and compromised data, by enabling merchants to gain insight into each other's payment experiences in real time, without compromising the privacy or security of their data.
Ethoca has recently made a very important contribution to safe shopping by making Ethoca360 Negative Signals freely available to any merchant that signs up for service during the introductory period. And, not just free to sign up, but free forever. Merchants need only apply and start actively using the service during the introductory period to ensure this lifetime benefit. This service is also being made available through partners such as 41st Parameter's FraudNet technology, GB Group's URU identity service, and the IMRG ISIS (Internet Shopping Is Safe) program. This network is rapidly growing to include other payment service providers and fraud merchants, and in the very near future will include many other in the U.S., Canada, U.K., and throughout Europe.
A safer online environment means a more profitable online environment
The more merchants collaborating against fraud, the safer the Internet will be, and the more customers will shop online.
Doing your part is simple, and most importantly, it will start saving you money right away, no matter what fraud tools or services you already use. That's because Ethoca360 Negative Signals is designed to be an additive service, compatible with all 3rd party offerings. This is simply smart business for members of the Global Fraud Alliance. Increasing the consumers willingness to shop online means more business for everyone.
We invite you to join.
Posted by Andre Edelbrock on Tue, Aug 25, 2009
It's not often we have an opportunity to "brag on" our board members, but today it's a personal privilege for me to do just that. First Secretary of Homeland Security and Ethoca director, Governor Tom Ridge, has completed his long awaited book "The Test of Our Times: America Under Siege and How We Can Be Safe Again". Scheduled for release on September 1, it promises to a super bestseller.
The book is Secretary Ridge’s account of his up-close and personal journey immediately following the attacks of September 11, 2001 – through his days as White House Homeland Security Director – his leadership of the Department of Homeland Security – and his experiences following that historic endeavor. He praises the unsung heroes of that journey, lays out the challenges and the victories along the way and offers his views on how we can achieve a better, safer world.
Tom is one of those rare men who truly deserves the accolade "American hero," although he also is a man of genuine humility who would be first to pass that mantle on to others he feels more deserving of recognition. He brings a unique perspective to our board, both as an accomplished businessman in his own right, and as a pre-eminent authority in the global threats of terrorism, cybercrime and financial fraud, and the connections between them.
We know his book will prove a riveting fireside read, and a popular first telling of the history of 9/11, and we wish him the best of success in his upcoming launch. And, we promise we'll be among the first to offer a review in the days following the book's release.
Online Retail Fraud Risk Insights from Secretary Ridge
Read what Secretary Ridge had to say about managing online retail fraud risk in an era of globalization, East European cybercrime gangs, and unparalleled data security breaches.
Download a copy of his keynote address to the 2009 Merchant Risk Council conference.
Posted by Paul Paetz on Thu, Dec 11, 2008
It’s so great to see our newest member Tahoe Mountain Sports getting the
word out about the Community.
Nice to see it get picked up by the Outdoor Industry Association.
Thanks David!
Also, David shared some great insights in a video on the Community channel on YouTube. Watch embedded clip below, or use the link above to see it.