New Survey Reveals Online Fraud Disconnect Between Retailers and Shoppers
- New data is first of its kind examining eCommerce confidence levels among retailers and consumers
- 39% of US retailers strongly believe that they are doing everything they can to prevent eCommerce related fraud, yet only 1 in 5 US consumers feel the same
- Up to 66% of US consumers wouldn’t buy online again from a shop where their account was compromised
The research, which comprised 4,000 consumers and 400 retailers across the US,
In the US, more than three quarters (82%) of retailers said that they have seen an increase in fraud attempts since the pandemic began, with promo abuse having the biggest negative impact (46%) on revenues followed by Account Takeovers (43%).
The impact of fraud on retailers’ bottom lines is severe, with 26% of global retailers saying that fraud is significantly damaging their profitability. Worse still, over one-third (34%) of global retailers said they had lost between 5% and 10% of their eCommerce revenue to fraud in 2020.
A confidence gap between retailers and consumers globally was also unearthed, with more than half (55%) of all retailers stating that they were confident in their ability to prevent eCommerce related fraud, despite only 34% of consumers trusting in retailers’ ability to prevent said fraud.
In the US specifically, a third (33%) of online consumers said their concerns over online shopping continue to grow and just under half (45%) of consumers believe that retailers will find it even harder to prevent fraud over the next year.
Long-term brand impact was a prominent factor for consumer confidence in online shopping too. Not only did 40% of US consumers say they would blame the retailer if their account was compromised, but as many as 66% said they wouldn’t buy online again from a shop where their account was compromised.
When it comes to fraud prevention, two-factor authentication was recognized by respondents as the most effective tool. However, it was also ranked as the most damaging to revenue for
The use of new technologies to smooth the payment process and reduce fraud is becoming more prevalent as well.
“It’s no surprise that the rapid growth of eCommerce has also led to a rise in eCommerce fraud, and as our research shows, the impact is significant for both merchants and consumers,” said
The full Crisis of Confidence report from
The eConfidence benchmark survey was fielded in