On-line fraud causes confidence hole between prospects and retailers, research finds

As ecommerce elevated through the pandemic, so did fraud. In response to a brand new survey by Riskified, within the U.S., greater than three quarters (82%) of shops stated that they’ve seen a rise in fraud makes an attempt because the pandemic started; promo abuse had the largest affect (46%) on revenues, adopted by account takeovers (43%).

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

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

This info is vital for retailers to grasp, as 66% of U.S. customers stated they wouldn’t purchase on-line once more from a store the place their account was compromised.

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

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

Learn the full report by Riskified.