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Technology Stocks : Identix (IDNX) -- Ignore unavailable to you. Want to Upgrade?

To: steve who wrote (25351)	12/11/2003 12:44:34 PM
From: steve	Read Replies (1) \| Respond to of 26039

Online Fraud Is Catalyzing New Payment Solutions Yahoo! News Dec 11 2003 : Internet fraud is a perennial issue for Web merchants, even if CyberSource reports losses at North American e-tailers to have dropped to 1.3 per cent in 2003, down from 3.6 per cent in 2000. TowerGroup estimates that just 50 per cent to 70 per cent of all fraudulent payments are identified by existing anti-fraud solutions. Despite this, such solutions can deliver solid return on investment, TowerGroup advises, “due to the magnitude of merchants’ total fraud losses in today’s Internet environment”. Retailers and service providers can also improve cross-industry collaboration against fraud by sharing strategic data. Bilateral authentication between consumers and businesses is also an issue, given the huge rise in ‘copycat’ merchant websites and ‘phishing’ scams on the Internet. Going forward, TowerGroup believes businesses and consumers will use new authentication technologies to validate a web site before sending sensitive data online. Since Internet fraudsters have free rein in environments that have not yet defined methodologies to identify or stop frauds or scams, TowerGroup analyst, Elizabeth Robertson, advises that “significant opportunities [exist] to improve the functionality and scope” of online fraud solutions. “Internet fraud is dynamic”, Robertson asserts, “and solutions must be capable of rapidly evolving to meet the ever-changing demands of the Internet transaction environment”. In time, fraud analyses will become real-time, Robertson predicts, and will leverage network connectivity, aggregation technology and even biometrics. With identity theft overtaking credit card fraud as a primary concern for Internet consumers, at 54 per cent and 26 per cent, respectively, according to research firm, SPSS, merchants and service providers will have to take a two-pronged attack against the two evils that are threatening eCommerce. epaynews.com steve