A group of e-commerce and payment-services companies joined forces today to fight credit card fraud online.
American Express, First Data, Buy.com and Expedia were among the
companies that announced the formation of an industry coalition dubbed the
Worldwide E-Commerce Fraud Prevention Network.
Online credit card fraud has been a wide river to cross for Internet
merchants--which often must foot the bill for fraudulent charges. The
prevention network's main charge will be to mitigate these troubles by
sharing fraud-prevention information and best practices with all merchants
"The (network) has the potential to do what no other fraud-prevention group
is doing: prioritize merchant concerns and identify specific solutions for
resolving those issues," Steve Squeri, president of establishment services
for American Express in Canada and the United States, said in a statement.
The group met yesterday for its first public event, a fraud-prevention
seminar, at a retail-industry trade show from the National Retail
Federation. The network's original founder, American Express, will fund the
group's efforts for its first year, opening charter memberships to
merchants of all sizes.
ClearCommerce, Starwood Hotels & Resorts Worldwide, Ventro and Paymentech
also are founding members of the network. The group plans to hold fraud-prevention workshops and seminars to educate industry businesses. It also
has hired the research firm Gartner to research fraud-prevention solutions.
This announcement follows a
broader initiative by American Express to protect consumer privacy and
security while shopping online. Earlier this month, the credit card company
launched "disposable" credit card numbers for its
members online. Cardholders log on to a secure Web site and receive a one-time-use credit card number to use for making an online purchase.