Retailers miss out amid fraud fears

16 November 2007

Fears of online card fraud result in £23bn a year less for retailers

The UK's online industries are missing out on £23bn a year because customers are afraid of card fraud, research has said.

Nearly 40% of shoppers fear their card details will be stolen if they use them online, while some said they would make more purchases each month if they had confidence in internet security, the survey for transaction service 3V revealed

It comes after payments industry body Apacs revealed £137m was lost to card fraud in the first half of 2007, up 44% on the same period last year.

Almost half of those surveyed believe a lack of proper legislation is to blame, saying the Government should issue clearer guidelines on security for online shoppers.

Meanwhile 39% of people said it was down to the sites themselves to reassure people their details would be safe.

Kieron Guilfoyle, chief executive of 3V Transaction Services, said: "The British public has strong reservations about the safety of their card details when shopping online.

"Internet shopping has become incredibly popular over the past few years, and it's up to the Government, retailers and the payments industry to create a secure environment for consumers to enjoy internet shopping without fear of becoming a victim of fraud."