Online fraud causes confidence hole between clients and retailers, research finds

As ecommerce elevated in the course of the pandemic, so did fraud. According to 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 for the reason that pandemic started; promo abuse had the most important influence (46%) on revenues, adopted by account takeovers (43%).

A confidence gap between retailers and consumers globally was additionally unearthed; greater than half (55%) of all retailers mentioned they have been assured of their means to stop ecommerce-related fraud, despite the fact that 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 important 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 they’d misplaced between 5% and 10% of their ecommerce income to fraud in 2020.

Merchants who choose to leverage fraud-prevention options, similar to these provided by Riskified, will see elevated belief and confidence with their clients, the report says.

Read the full report by Riskified.