Nine out of 10 internet frauds in the UK still go unpunished and usually unreported, despite the recent attempts by credit card companies to crack down on online fraud.

A report by UK credit agency Experian blames the boom in online fraud on internet retailers failing to report cases of fraud or check buyer credentials such as verifying the address of the credit card holder and the delivery address. Experian also claimed that there is a lack of police interest in following up complaints.

Out of the 800 ebusinesses questioned in the survey, only 57 per cent bothered to report fraudulent transactions, while more than a half of those that did said the police neglected to investigate the matter.

Only nine per cent of all fraud cases reported to police actually lead to prosecutions, according to Experian.

Fraudulent transactions are typically only detected weeks after the initial transaction when the victim receives a statement, giving fraudsters the opportunity to use the card more than once.

According to the report, "even when the crime is detected, the analysis suggests that nine in every 10 internet fraudsters are getting away with it".

Experian spokesman Richard Fiddis said: "The internet is becoming the first choice for thieves who, in another age, might have just been petty shoplifters or locker room pickpockets."

However, he added that consumers, although inconvenienced by fraud, are not at financial risk, because credit card companies are responsible for reimbursements.

But the damage to ebusinesses is becoming significant. Fiddis said more than a fifth of online retailers experience fraud, amounting to some 10 per cent of their sales.

First published on uk.internet.com