Six in ten domestic trading companies (62 percent) have already fallen victim to online fraudsters. This is apparent from the 2021 security study that was presented on Holy Saturday and which the professional association has carried out together with the Ministry of the Interior and the Federal Criminal Investigation Department. A quarter of companies have already been scammed several times.
eCommerce is booming, not least because of the corona pandemic. However, this also opens up more opportunities for criminals. In 2021, the industry in Austria grew by 20 percent. “By 2021, the number of cybercrime crimes will have increased by 28.6 percent compared to 2020. One of the reasons for this is the Covid-19 pandemic, which is impacting many different areas of our society. It is striking that crime is shifting from traditional forms to new phenomena,” Interior Minister Gerhard Karner (ÖVP) said in a broadcast.
“The damage is mounting and sometimes in the millions,” emphasizes Rainer Will, general manager of the trade association. The situation on the consumer side is similar: every second person considers the dangers in e-commerce to be great. According to the survey, security is now one of the most important purchase criteria for online shoppers.
“The e-commerce boom has not escaped the attention of criminals either. They use the alleged weaknesses in the online store’s ordering process for their machinations. The misuse of real identities when buying on account represents the majority of reported violations in 2021,” explains Manuel Scherscher, deputy director of the federal investigation.
Different types of fraud
According to the research, the types of fraud that online merchants face are diverse. The most common forms of fraud are currently return fraud (48 percent), unpaid orders (50 percent), providing false name and address details (55 percent) and, above all, refusing to receive the goods (63 percent).
damage increased
The extent of the damage has also increased, as evidenced by the safety investigation that was conducted for the second time. In 2019, the amount of damage caused by fraud in online trade was still largely (55 percent) below 500 euros. In 2020, the extent of the damage increased significantly: only a fifth of the damage amounts were below 500 euros, while in 30 percent of the cases the retail companies lost between 5,000 and 10,000 euros. The share of cases with damage of up to one million euros has also increased from two to 13 percent.
Overdue Security Demand
According to Will, there is still a lot to catch up on when it comes to online security: “The Austrian security survey of 2021 found that a third of domestic online retailers do not yet use a fraud prevention solution. Urgent action is needed here. Providing security costs significantly less than doing nothing. After a third of all domestic consumers have already had negative experiences with cybercrime, retailers need to ensure the utmost security in the digital space to win new customers and not lose regular customers.”
A third of consumers are already victims
Cybercrime is also no stranger to domestic consumers, according to a survey conducted in collaboration with Mindtake Research among 500 respondents to the survey. A third is already a victim of internet criminals. Infecting computers with malware such as viruses and Trojan horses (33 percent), data theft, hacker attacks and phishing (15 percent), online payment fraud (14 percent) and identity theft and digital extortion (tied at six percent each) were the top most common ) called. In addition, almost a fifth of the respondents (19 percent) indicate that they have been a victim of a fake webshop.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
