Merchant Losses from Online Payment Fraud, Which Amounted to the Seemingly Astronomical Sum of $2.6 Billion in 2004, Still Accounted for just 1.8% of Total Sales

DUBLIN, Ireland--(BUSINESS WIRE)--June 27, 2005--Research and Markets (http://www.researchandmarkets.com/reports/c19852) has announced the addition of Privacy and Security: Fraud, Identity Theft, Phishing, Viruses and Other Threats to their offering.

Merchant losses from online payment fraud, which amounted to $2.6 billion in 2004, still accounted for just 1.8% of total sales. Similarly, actual consumer financial losses suffered in online scams in the US are negligible. Leaving aside auction sales, fraud comprised roughly one-tenth of one percent of B2C commerce in 2004 and the median reported loss, according to the Federal Trade Commission (FTC), was just $214.

Nevertheless, the threat of online fraud cannot be ignored. Consumers are not treating online crime as a trivial matter.

Find out how online privacy and security fears can adversely affect your company's integrity--and what you should do to protect yourself.

This report is for the attention of ISPs, Security Consultants, Online Software Providers and Marketers, Financial Service Firms, Online Retailers, Health Care Organizations and Government Agencies.

The Privacy and Security report reveals the reality behind the shadowy world of online scammers, spammers, hackers and thieves--and exactly what consumers, businesses and governments are doing to combat them.

At the annual RSA Security Conference early in 2005, Bill Gates made a splash by announcing that Microsoft planned to give free anti-virus and spyware software to consumers by the end of the year, with a paid version destined for enterprise users. The announcement was a signal of how important online security and privacy issues are becoming. But it also highlighted a vexing conundrum for e-commerce companies and online marketers: as security is beefed up across the entire IT infrastructure, consumer awareness of the issue is increasing--and yet, at the same time, consumer confidence in online security is declining.

There is no denying the importance and prevalence of online fraud. The Internet, whether through the Web or e-mail, has quickly become the most common way for criminals to initiate scams. Corporate spending on security measures totals in the billions. Home users are increasingly knowledgeable about threats and preventative actions. Luckily, damages, at least thus far, have been trivial. Merchant losses from online payment fraud, which amounted to the seemingly astronomical sum of $2.6 billion in 2004, still accounted for just 1.8% of total sales.

The immediate threat is perceptual. Until shoppers feel safe online, the economic foundations of the Internet--and billions of dollars of business worldwide--are at risk.

Key questions the "Privacy and Security" report addresses:

- What industries are the main targets of scams?
- What types of attacks constitute the biggest threats?
- What steps can companies take to protect vital information?
- How vulnerable are financial sites?
- How are privacy and security threats changing consumer behavior
  online?
- What should consumers do to better protect themselves from
  privacy violations and malicious attacks?
- What role can international government agencies play in protection
  and prosecution?
And many more...

Sources:
America Online
American Express
Anti-Phishing Working Group (APWG)
Business Software Alliance (BSA)
CIO Magazine
Clearswift
CyberSource
Forrester Research
International Data Corporation (IDC)
Javelin Strategy & Research
MessageLabs
Mindwave Research
National Cyber Security Alliance
ReleMail
US Federal Trade Commission (FTC)
VeriSign
WatchGuard Technologies
Websense

For more information visit http://www.researchandmarkets.com/reports/c19852