The Federal Trade Commission has released consumer fraud and identity theft complaint data covering January to December 2005.

The FTC received over 685,000 complaints during the period with 63% of those related to fraud. Of that percentage, Internet-related complaints accounted for 46%. Reported online fraud where wire transfer as the method of payment increased by more than triple between 2003 and 2005. I’m sure Western Union is loving that news ;).

Methods of payment reported:

Bank Account Debit - 13%
Cash/Cash Advance - 2%
Check - 14%
Credit Cards - 43%
Money Order - 22%
Telephone Bill - 1%
Wire Transfer - 5%

Of the 55% of complaints where the method of initial contact was reported as being the Internet, email comprised 35% and the web 20%.

The median loss amount for online fraud was $345 in each instance. This represents a 45% increase over 2003. 5% of complainants stated losses of $5,000 or more, an increase in numbers of over 100% compared to 2003.

Read more (PDF)

Further resources:

Preventing credit card chargebacks - anti-fraud strategies

Credit Cards & Identity Theft - Online Fraud

Anti hacking tips for home based online business