ActivMedia Research: E-Commerce Fraud Protection - Transaction Automation.Business/Technology Editors PETERBOROUGH, N.H.--(BUSINESS WIRE)--May 29, 2001 ActivMedia Research LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (http://www.ActivMediaResearch.com) - Websites that participated in ActivMedia Research annual Real Numbers E-Commerce study, "WebChange 2001: eBusiness Comes of Age" are increasingly accepting online credit card processing, and many have automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. the process. Fewer are taking credit card payments by methods that require much human input, such as by fax, e-mail, or phone. Taking credit card information manually leaves the consumer far more open to credit card fraud Credit card fraud is a wide-ranging term for theft and fraud committed using a credit card or any similar payment mechanism as a fraudulent source of funds in a transaction. The purpose may be to obtain goods without paying, or to obtain unauthorized funds from an account. than when a site employs automated processing that encrypts the number before transmission. Not surprisingly, B-to-C sites have twice the level of problems with online orders as B-to-B sites and nearly twice the level of fraud losses. Nevertheless, these numbers are low in comparison to the level of online transactions that are completed without a hitch hitch to fasten by a knot, usually used to describe tying a horse to a post. . Pure Play sites experience problems with 12% of orders and suffer fraud losses with 14% of orders, compared to 9% and 12% respectively. Those that close orders offline have fewer problems.
Change in Problem Orders - Increased (%)
Total B-to-C B-to-B
% of problem orders 9 10 5
% of orders resulting in fraud 11 12 7
WebChange 2001: eBusiness Comes of Age
Midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually companies have much lower levels of problems associated with online orders, while those at the lowest end ($10K) and the highest (over $1M) experience problems with 20% and 15% of orders, respectively. Harry Wolhandler, ActivMedia's VP of Market Research comments, "In the past, consumers were hesitant hes·i·tant adj. Inclined or tending to hesitate. hes  i·tant·ly adv. to place orders online for
fear of credit card fraud. Web businesses have had the same fears over
the years; however, the actual incidences of real problems with
transactions or losses from fraud are relatively low in comparison to
what online businesses stand to gain. Those newest to the Web are
automating their processes from credit card clearing to shipping. B-to-C
sites have a slightly higher level of problems and fraud than B-to-B,
but that is to be expected. B-to-C customers are generally from the
public, while B-to-B customers are members of a smaller community and
may be authenticated au·then·ti·cate tr.v. au·then·ti·cat·ed, au·then·ti·cat·ing, au·then·ti·cates To establish the authenticity of; prove genuine: a specialist who authenticated the antique samovar. through higher levels of security." http://www.activmediaresearch.com/rn01webchange.html "WebChange 2001: eBusiness Comes of Age" ($1,895) is a strategic look at the nature of the online landscape in a time of turbulence turbulence, state of violent or agitated behavior in a fluid. Turbulent behavior is characteristic of systems of large numbers of particles, and its unpredictability and randomness has long thwarted attempts to fully understand it, even with such powerful tools as and change. |
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