E-commerce and identity fraud
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E-commerce and identity fraud Gareth Jones Received (in revised form): 19 December 2000
Keywords: identity, validity, veri®cation, identity fraud, impersonation, transaction fraud
Abstract This paper focuses on the subject of personal and corporate identity in the UK, the ways in which identity can be substantiated, and the methods used by fraudsters to invent identities or copy other people's identities. The setting for this is the Internet, as utilised as a channel of introduction by two market sectors Ð retail and ®nancial services. The paper considers the availability and suitability of deploying fraud prevention solutions to reduce substantiated fraud and discourage repeat attacks.
Introduction
Internet purchasing: Canvase Lifestyle survey results reveals increased purchasing
Gareth Jones Head of Fraud, Experian, Talbot House, Talbot Street, Nottingham NG1 5HF, UK Tel: 44 (0) 115 976 8901 E-mail: [email protected]
The sensitivity surrounding companies' real exposure to fraud perpetrated through the Internet is such that this paper makes no reference to speci®c organisations by name. It will, however, cover what fraud goes on and why, and re¯ect on how these crimes can be prevented and the consequent impact of doing so. To give this paper some context, it is appropriate to start with the most recent ®gures on domestic Internet usage. These are drawn from a survey of over half a million Internet users conducted as a part of Experian's Canvasse Lifestyle survey questionnaire, which was completed in December 2000.1 It represents the most statistically valid analysis of actual consumer Internet usage in the UK, and provides a powerful insight into changing Internet shopping patterns over the last 12 months, as well as a breakdown of the age, income, purchasing frequency and types of products purchased by online shoppers. The ®gures show that the number of people purchasing on the Internet has more than doubled since the beginning of the year. The survey reveals that people are starting to buy more frequently on the Internet, with 1.45 million consumers making four or more purchases since January 2000: the most popular items are holidays, books, computer games and music. The key ®ndings from Experian's Canvasse Internet survey are as follows. Ð The proportion of the UK population purchasing over the Web in the last 12 months has more than doubled, from 5.1 per cent (2.26 million adults) at the beginning of 2000 to 10.7 per cent (4.7 million adults) by December 2000. Ð Some 3.3 per cent of the UK adult population Ð around 1.45 million people Ð had made four or more purchases online since the start of the year. At the same time, the proportion of adults who bought online
H E N R Y S T E W A R T P U B L I C AT I O N S 1 4 6 3 - 5 1 7 8 . I n t e r a c t i v e M a r k e t i n g . V O L . 2 N O . 4 . PP 357±372. APRIL/JUNE 2 0 0 1
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Most popular online purchases: holidays, books, computer games, music
just once in the same period decreased from 35 per cent to 27 per cent, but the proportion
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