Fraud is expected to cost online merchants $1 billion this year, including $300 million this holiday season alone, an electronic commerce consulting and research firm says.

Web merchants suffer 30 times the rate of fraud as retail stores do - 3% of sales versus 0.1% - according to the firm, Celent Communications of Boston. Online sellers of more popular items such as books and software are often clobbered with rates as high as 15%, a Celent report says.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.