Cybersource has just released their annual fraud report for the UK and, as always, it makes interesting reading. For those of you not familiar with Cybersource, they provide online payment solutions, such as fully automated credit/debit card processing services and sophisticated fraud prevention tools for merchants.

The survey included 150 respondents of which 50% were from retail sector. The majority of online revenues were in the £10m to £100m range.

Here are some highlights:

• One third predicted online revenue growth of over 50% for 2007

• 13% of respondents accept PayPal - 19% say they have plans to in 2007

• Customer service is No.1 concern, price competition is second, fraud is third

• Sales growth continues to outpace fraud - as a % of revenue, fraud has stalled or dropped for 84% of retailers

• Concerns that fraudsters will be more sophisticated in 2007, with identify theft being the key problem

• Only 36% of retailers have started the process of planning for PCI Compliance (June 2007) - and 40% currently have no plans to achieve compliance!

• Over-reliance on manual review continues - on average the respondents manually reviewed 1 in 3 orders!

• After June 30th 2007, retailers will be unable to accept Maestro online unless they have implemented Mastercard SecureCode functionality.

Helping retailers understand and automate fraud prevention continues to be a big focus for our team here at ChannelAdvisor and we plan to introduce new ways to do this in 2007. The good news is that users of ChannelAdvisor’s Merchant software platform can already take advantage of our built-in Cybersource integration in the US and UK.

UK blog readers - are you seeing the same trends as highlighted in the report? Let us know!

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