SPSS - News Room

News Release

February 24, 2009

E-business on ‘war footing’ against recession fraud

~ SPSS Inc. research reveals retailers going on the offensive to tackle online scams ~

The UK’s online businesses are tightening up the security of their online payment systems in the face of increased fraud¹ from Internet shoppers.

Research conducted by Vanson Bourne² on behalf of SPSS Inc., the leading worldwide provider of Predictive Analytics software and solutions, found more than one third of online businesses (37 per cent) say they have implemented new measures to reduce payment fraud via their online channels.

One in four are using customer behaviour analysis to identify unusual or suspicious activity, which could be linked to fraud. For example, picking out patterns of behaviour which have been found to indicate fraudulent activity in the past. And the same number is restricting purchases from certain locations or countries which they believe to be
high risk.

The research also found that almost one fifth (18 per cent) are reducing the number of payment methods in the belief it will help cut the risk of fraud.

This is in contrast to traditional businesses - one in four (27 per cent) didn’t believe they were equipped to deal with increases in fraud..

“With the slump in high street sales, many view the Internet as a guardian angel for retail sales figures. In December 2008, online sales were up more than 14 per cent ³ compared to the previous year – something no firm can afford to ignore,” said Haydn Lewis, vice-president EMEA at SPSS Inc.

“Businesses are fighting on all fronts and every penny is precious. It’s a necessity that companies use automated technology to improve their internal systems and processes. By deploying advanced Predictive Analytics to highlight suspected fraud, online retailers are adding a second layer of protection to safeguard their revenues in these difficult times.”

UK online retailers lost up to 5 per cent of total revenues as a result of fraud in 2008 – UK Online Fraud Report 2009

Vanson Bourne survey conducted on behalf of SPSS Inc., sampled 100 CIOs, IT directors and senior management staff, at companies with more than 1,000 employees

Consumers spent £4.67 billion online in December 2008, an increase of 14.2% compared to December 2007 – IMRG Capgemini e-Retail Sales Index