Online retailers are being hit by Internet fraud levels of up to 40 per cent, according to a new report that says the Net is becoming "the first choice for thieves".
The research by Experian, the credit and business information company, found that nine out of 10 fraud cases go unprosecuted. Most websites report less than 1 per cent of fraudulent sales but in sectors such as software, electrical goods and ticketing, the figure can rise to 40 per cent because of serial offending.
Forty per cent of companies admitted being struck by the same fraudster several times, with twothirds saying it took more than a month before the crime was detected.
Mr Richard Fiddis, chief operating officer of Experian, said: .
"The total level of fraud is growing so fast that it is eating into any price advantage established retailers get from selling over the Web."
Apacs, the industry clearing system, said it could not identify Internet fraud separately from telephone or mail order disputes. However, credit card companies such as Mastercard confirm that the problem is growing. The latter has launched a crackdown on lax websites, backed by new rules and monthly fines of up to £100,000.
