Credit Card Debt

According to their survey almost 46% of the respondents said that credit card fraud is a very big problem in e-commerce while 26% believed that it was not such a main issue. There are many people who have never shopped online and have no intentions of doing so. When these people were asked they said that due to e-commerce frauds it is very unlikely that they will ever shop. Almost 55% of these respondents said that in case of any identity theft or credit card fraud it will be they themselves who will be blamed.

This also raises major concern as the victims of the identity theft or credit card fraud are the ones who have to bear the loss.

The credit card companies usually find one or other fault and make them pay the charged amount . Another survey was conducted by Ipsos-Reid. Consumers from 16 countries were surveyed. Almost all of these consumers said that credit card security was their major concern while shopping online.

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This survey also highlighted the point that most of the people do not shop online because of the fact that they do not know what security measures any company has taken on its e-store in order to protect their consumers and themselves against any fraud.

Therefore the companies should make sure that they define any fraud detectors present on their website. Doing this has a twofold effect; the consumers will also get satisfied and the hackers will not enter the site for the fear of being caught. This will also disclose the corporate policies as an online purchase usually requires some personal information.

This personal information is later compared with the one present with the consumer’s bank or any other third party . Jupiter Media Metrix also did a research on e-commerce fraud. According to their research fraud in e-commerce is present but not to the extent it is interpreted.

Credit card frauds, which are the most happening crimes and has affected almost half of the consumers who have shopped online, is responsible for only one fourth of the total e-commerce frauds. Their research also says that e-commerce frauds are “overhyped and misunderstood”. This research highlighted the qualitative aspect of e-commerce threats. According to Jupiter Media Metrix, people are not afraid of the fraud itself but scared of the unknown. They do not know how many and to what extent frauds can happen on the internet. According to FBI (Federal Bureau of Investigation), almost 26% of all complaints lie under the category of frauds.

This means that the actual frauds happening online are a lot less than presented in the papers . In the end juniper gave a few suggestions which can be helpful, as frauds in e-commerce can have various different categories, and putting them under one definition means reducing customer pool. They divided e-commerce fraud into three categories namely : - Threat; According to Juniper, in 2000 a hacker tried to attack a website of egghead. com. This was classified under e-commerce fraud, even though it was just an attack and there were no losses. This increases the overall fraud percentage in e-commerce scaring away the potential customers.

Therefore it should have been categorized under threat and same should be done with other similar incidents. - Breach; A book seller name biblifind had all the credit card numbers stolen from its website. However, none of the credit cards numbers were misused. Hence this is again not a case of fraud but just security breach. - Fraud; a hacker stole almost 60,000 credit card numbers from creditcards. com. Many of these numbers were used for shopping. This is a case of fraud. According to Juniper, unnecessary classification of every crime in e-commerce begin defined as fraud only scares the potential customer away .