Precis - Cyber crime poses the "biggest" threat to e-commerce retailers
What? The British Retail Consortium ("BRC") has raised concerns about the increasing threat from cyber criminals to the UK's e-commerce market. According to a report published by the BRC it is calculated that cyber crime cost retailers more than £205 million in 2011-12, with account takeovers, card fraud, and electronic "phishing" for private information being some of the most costly e-crimes borne by retailers. In 2011, it was found that UK brands and companies were the second most targeted by "phishers" phishing for private information.
So what? The rise in cyber crime targeting e-commerce retailers is particularly worrying for UK companies and brands because the UK population is the biggest online retail spender per capita than any other nation, according to a report by Euromonitor. The online market is a growing market for UK retailers offering cheap access to a wide range of customers and represented approximately 10% of total retail spending in 2010-2011.
Given the growth of the online market, retailers may feel they have no choice but to increase spending on security measures to prevent online fraud. More worryingly, the BRC estimates £112 million was lost due to consumers not completing sales due to additional security measures.
Therefore, the BRC is calling for more police resources to tackle e-crime and to seriously investigate online fraud cases. A consistent and resolute investigative and reporting approach will reassure retailers that the police take online fraud cases seriously.