Feeds

Porn sites face credit card fraud fines

Will the sex industry swallow this?

  • alert
  • submit to reddit

Application security programs and practises

Porn sites which rip off sex-surfers are to be handed an ultimatum by credit card groups - clean up or cough up.

No, not their material. Online sleaze operators must fix their fraud record or face monthly fines of $5,000.

Europay International, which is owned by 9,000 British and continental banks and acts for Mastercard in the UK, says the move is a response to high levels of customer complaints.

The porn industry has a higher level of credit card fraud than any other Internet sector, according to Paul Lucraft, Europay deputy general manager UK and Ireland.

"There are a lot of problems with these merchants. Some of them are trading in a dodgy fashion, and there are a lot of unethical types of business," he said.

One prolific activity involves porn meisters asking users for credit card details to check proof of age. They claim the information will not be used, then go ahead and make charges on the cards. Worse still, these hapless voyeurs also often find themselves locked into long-term contracts.

Another escapade involves a credit card number being copied through a completely different transaction or source. The details are then used on the porn site - with some people too embarrassed to complain due to the XXX name on their statement.

"We want it stopped because it's bad trading. And it has ill-effects on genuine sites," Lucraft added.

The Excessive Merchant Fraud Programme started in April, and primarily offered sites a few months' grace period. Now the system is starting to kick in.

Sites are fined $25 if they are above the two per cent fraud cut-off for one month and $5,000 if they breach the limits for two or more consecutive months.

But customers won't get this cash - it is likely to go towards compensating banks which fork out to cover stolen credit card details.

Meanwhile, VISA is reported to be fining porn operators up to $100,000 a month if fraud hits seven per cent on sites.

Worldwide average credit card fraud is believed to be 0.16 per cent, according to Europay. Online fraud is considerably higher at around four per cent. Total credit card fraud costs Britain £189 million - with the Neb accounting for £7 million. ®

Related Stories

Europe to get tough on cybercrime
Ecommerce is a hotbed of fraud
Net pornographer jammed up in Federal probe

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.