As ecommerce increased during the pandemic, so did fraud. According to a new survey by Riskified, in the U.S., more than three quarters (82%) of retailers said that they have seen an increase in fraud attempts since the pandemic began; promo abuse had the biggest impact (46%) on revenues, followed by account takeovers (43%).
A confidence gap between retailers and consumers globally was also unearthed; more than half (55%) of all retailers said they were confident in their ability to prevent ecommerce-related fraud, even though only 34% of consumers trust in retailers’ ability to do so. On top of that, 40% of consumers place more blame on the retailer where their account was compromised than on the fraudster.
This information is critical for retailers to understand, as 66% of U.S. consumers said they wouldn’t buy online again from a shop where their account was compromised.
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.
Merchants who opt to leverage fraud-prevention solutions, such as those offered by Riskified, will see increased trust and confidence with their customers, the report says.
Read the full report by Riskified.
The post Online fraud causes confidence gap between customers and retailers, study finds appeared first on Venture Beat.