Online credit card fraud against small businesses

Kate Charlton and Natalie Taylor
ISBN 0 642 53846 8 ; ISSN 1326-6004
Canberra: Australian Institute of Criminology: 2004
(Research and public policy series, no. 60)

Foreword

While the online retailing environment has provided businesses with an unparalleled opportunity to expand their customer bases and improve profits, it has also increased the vulnerability of businesses to online credit card fraud. The degree to which Australian businesses experience online credit card fraud, and the losses associated with such fraud, have not previously been properly quantified. This is due to both a paucity of research in this area and a tendency in previous surveys to use convenience samples and a range of different business types.

This report presents findings of an empirical study which used random stratified sampling of five types of small business in Australia. The study investigated proportions of online retailers within each business type, the prevalence of online credit card fraud among these retailers, financial losses due to online credit card fraud, knowledge about financial liability from online credit card fraud, preventive strategies used, and attitudes toward financial institutions.

The report provides a review of Australian and international research into online credit card fraud, as well as invaluable information relating to fraud risks and prevention strategies. The findings are intended to be of use to businesses that are considering retailing online, as well as a useful resource for policy-makers and researchers interested in the online retailing environment.

Toni Makkai
Director
Australian Institute of Criminology