Merchant Risk Council Announces Annual E-Commerce Fraud Survey Results
MRC Platinum Members Show Best Overall Online Fraud Control Management
Editor's Note: HomeATM's Chief Operating Officer, Mitch Cobrin will be in attendance at this years Merchant Risk Council’s 7th Annual e-Commerce Payments and RiskConference
(Seattle , WA March 3, 2009 ) The Merchant Risk Council (MRC), a merchant-led trade associationfocused on electronic commerce risk and payments globally, todayannounced the results of its Annual Merchant Fraud Survey. This year’s survey was sponsored byCyberSource Corporation as part of its broader annual survey of onlinefraud. The results of this survey showMRC Platinum members setting the pace for e-Commerce merchants in both thecontrol of online fraud and the protection of legitimate customer orders. MRC Platinum members are 150 of the largestonline retailers in the world.
This year’s survey shows that MRC Platinum members areutilizing the highest number of fraud detection tools, have the lowest manualorder review rates, and lead all merchants in reviewer productivity.
Key Survey Findings:
- MRC Platinum members reported an average of just 1.1% of their totalrevenue lost to online fraud, compared to 1.4% for the overall sample, and 1.3%for other large non-member merchants with greater than $25 million in onlinesales
- MRC Platinum members rejected 2.4% of domestic orders on suspicion offraud compared to 2.9% for the overall sample, and 2.6% for other largenon-member merchants
- MRC Platinum members rejected just 6% of international orders compared to11% for the overall sample, and 12% for other large non-member merchants
- MRC Platinum members reported a fraudulent international order rate ofjust 3.2%, compared to 4.0% for the overall sample and 3.4% for other largenon-member merchants
- MRC Platinum members had a 70%higher review order productivity level compared to other large non-membermerchants, and were more than twice as productive as the overall sample
“This survey shows that even though MRC members are allowinga much greater rate of online orders to be processed, they are actuallyexperiencing a lower rate of overall fraud for both domestic and overseasorders,” said Tom Sullivan, Chairman of the MRC, and Sr. Director of GlobalPayments & Risk for Expedia, Inc. “Asmerchants continue to look for ways to maximize revenues during tough economictimes, accepting more valid international orders can be a great source ofgrowth.”
The survey also revealed that MRC Platinum members use anaverage of 7.8 automated fraud screening detection tools. This compares to just4.7 tools utilized by the overall sample and 5 tools used by other largenon-member merchants.
“Today’s online criminals are getting more sophisticated andrelentless in searching for merchant vulnerabilities,” said MRCExecutive Director Tom Donlea. “The MRC allows a wide range of e-Commerce and multi-channel retailersto combine forces and strengthen their defenses. These survey results validate ourcollaborative efforts in both fighting fraud and increasing merchantprofitability.”
March 10–12, 2009 at the Wynn Las Vegas. The conferencewill be uniting over 500 representatives from the world’s top Internetmerchants, credit card companies, risk management providers, law enforcementagencies and various consultants and educators – all with the mission of makinge-Commerce safer and more efficient for consumers.
Conference keynote speakers include:
- Terry Jones, Travelocity.com founder, focusing on the business ofinnovation.
- Chris Hansen, Dateline NBC correspondent, sharing his findings on thegrowing cybercrime community.
Forfull conference schedule, registration and exhibition information, please visitthe MRC website at www.merchantriskcouncil.org. Forjournalists wanting more information on this survey, please contact MRCCommunications Manager, Jordan Rubin (206.364.2789; jordan@merchantriskcouncil.org).
About the Survey
The MRC Platinum Fraud Survey was included as part of theEighth Annual CyberSource Fraud Survey, sponsored by CyberSource Corporationand conducted by Mindwave Research. Thesurvey was fielded October 21 through November 11, 2008 and yielded 400 qualified and complete responses, of which74 were MRC Platinum merchants. Thesample was drawn from a database of companies involved in electronic commerceactivities. Incentive to respondentsincluded a summary of the research.
Aboutthe Merchant Risk Council
The Merchant Risk Council (MRC) is a merchant-ledtrade association focused on electronic commerce risk and paymentsglobally. The MRC leads industry networking, education and advocacyprograms to make electronic commerce more efficient, safe and profitable.
The MRC Board of Directors and Advisors includes:Expedia, Inc., Adobe Systems, Inc., Neiman Marcus Direct, 41stParameter, Apple, BestBuy.com, Bill Me Later, Blizzard Entertainment, ChasePaymentech, CyberSource Corporation, Dell, Inc., Discover Network, Gap, Inc.Direct, iovation, Microsoft, Trustwave, Visa, Inc. and Wal-Mart. The MRC is headquartered inSeattle , Washington
The MRC Board of Directors and Advisors includes:Expedia, Inc., Adobe Systems, Inc., Neiman Marcus Direct, 41stParameter, Apple, BestBuy.com, Bill Me Later, Blizzard Entertainment, ChasePaymentech, CyberSource Corporation, Dell, Inc., Discover Network, Gap, Inc.Direct, iovation, Microsoft, Trustwave, Visa, Inc. and Wal-Mart. The MRC is headquartered in
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