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Home Security

Online fraud causes confidence gap between customers and retailers, study finds

by admin
September 26, 2021
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Online fraud causes confidence gap between customers and retailers, study finds
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As ecommerce elevated through the pandemic, so did fraud. In accordance with a brand new survey by Riskified, within the U.S., greater than three quarters (82%) of shops mentioned that they’ve seen a rise in fraud makes an attempt because the pandemic started; promo abuse had the most important impression (46%) on revenues, adopted by account takeovers (43%).

Key findings from Riskifieds eConfidence survey, comprised of four thousand consumers and four hundred retailers.

Above: Key findings from Riskified’s eConfidence survey, comprised of 4,000 shoppers and 400 retailers.

A confidence gap between retailers and consumers globally was additionally unearthed; greater than half (55%) of all retailers mentioned they had been assured of their capability to forestall ecommerce-related fraud, although solely 34% of shoppers trust in retailers’ ability to take action. On prime of that, 40% of shoppers place extra blame on the retailer the place their account was compromised than on the fraudster.

This data is essential for retailers to know, as 66% of U.S. shoppers mentioned they wouldn’t purchase on-line once more from a store the place their account was compromised.

The impact of fraud on retailers’ backside strains is extreme, with 26% of world retailers saying that fraud is considerably damaging their profitability. Worse nonetheless, over one-third (34%) of world retailers mentioned that they had misplaced between 5% and 10% of their ecommerce income to fraud in 2020.

Retailers who decide to leverage fraud-prevention options, similar to these supplied by Riskified, will see elevated belief and confidence with their prospects, the report says.

Learn the full report by Riskified.

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