More than 50% of the travel sector cites revenue loss as the biggest threat to business in online fraud according to a new report.
After revenue loss travel companies say turning away good customers for fear of fraud and trying to detect fraud were the biggest threats.
Other sectors in the CyberSource 2012 UK Online Fraud Report such as physical goods retailers and digital goods retailers say turning away good customers and spending too much time manually reviewing orders are the biggest threats to their business respectively.
The report also looks at whether companies in all sectors can identify if fraud is occurring via mobile channels with 16% say they are tracking it through mobile applications and 25% through mobile websites.
More than three-quarters, 81%, of respondents in the travel sector were using the same tracking tool as for their main website while in the digital goods space only 45% were using their existing fraud tool for mobile transactions.
The CyberSource study also asked participants about whether they expected online revenue growth in 2012 with answers reflecting a broadly optimistic attitude.
Overall, 73% expect online business to grow, 24% expect no change and the remainder expect a decline in revenue.
Respondents in the travel sector say they are anticipating average online revenue growth of 11% in 2012 versus the digital sector which expects increases of 33%.
Other findings include:
- In travel 69% of travel companies are manually reviewing online transactions compared to an average of 61% across all sectors
- Companies are reviewing about 22% of transactions coming through their systems
- On average a manual reviewer looks at about 48 orders a day while in travel it is about 54 orders a day
- About 4.3% of orders are being rejected compared to 5% last year when there was a spike
- Of orders that are manually reviewed 75% are ultimately accepted with the report suggesting that merchants need to finely fraud detection systems
The CyberSource 2012 UK Online Fraud Report, which can be downloaded here
, surveyed 200 merchants across all sectors in the UK.
NB: Image via Shutterstock