Merchants lose US$649K a year to online fraud

A study has found that online traders in U.K. consider fraud to be their top threat, while concerns about customer data theft have increased.

UK merchants say online fraud is now the greatest threat they face, costing them on average 400,000 pounds(US$648,920) in annual losses, according to a survey published on Tuesday by CyberSource.

The payments processing provider's sixth annual to be fraudulent.

Online businesses rejected an average of 4.6 percent of orders on suspicion of being scams, a figure CyberSource said was worrying, partly because some of the rejected orders were likely to be valid.

Read more of "Merchants lose £400k a year to online fraud " at ZDNet UK.