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E-Commerce Times: Expedia Reports Significant Credit Card Fraud

“Online travel agency and Microsoft spin-off Expedia.com
reported Wednesday that it will record $4 to $6 million (US$) in
third quarter losses to cover fraudulent credit card purchases made
on its Web site.”

“Expedia, which reports gross bookings in excess of $1 billion
and net revenues of $85 million, has an agreement with the airline
companies to pay face value for any fraudulent ticket purchases.
The company makes its money from commissions from hotels and
airlines.”

“Expedia vice-president of marketing Erik Blachford said
Wednesday that the stolen card numbers were not obtained from
Expedia’s customers
and emphasized that the Web site remains
secure. Blachford also said that the site has added more
anti-fraud measures to help verify credit card purchases
, but
declined to elaborate about what those measures are.”

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