The only way to prevent online fraud is by educating consumers about IT security, it has been claimed.

Mark Matthews, UK managing director of eWise Systems, explained that while companies can take steps to reduce opportunities for cyber-crime, the consumer is ultimately responsible.

He said: "The only way to avoid fraud online is to educate the consumer … In our experience of working with Egg and First Direct, the point of risk is at the consumer."

Mr Matthews also added that online retail firms can reduce the number of customers cancelling orders before they are completed by increasing the number of payment options they offer.

At the start of the month, Panda Labs reported that cyber-criminals are testing virus before releasing them on to the internet.

It said by doing so they are able to maximise the amount of income they make from each piece of malicious software they release.

According to a recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent) In a recent survey of SMEs for Connect, the two most important benefits of outsourcing were 'guaranteed response times' and 'allowing in-house IT staff to concentrate on more strategic issues'.