October 7, 2021
The research from Riskified, an e-commerce enablement and fraud-prevention solutions provider, shows how widespread on-line retail fraud is and how it is perceived in the eyes of shoppers versus retailers. Half of UK retailers believe they are doing everything they can to prevent e-commerce fraud, but far less consumers (17%) share their confidence. 82% of UK retailers said that they have seen an increase in fraud attempts since the pandemic began, with Card Not Present fraud having the biggest negative impact on revenues (60%) followed by Promo Abuse (48%). 26% of global retailers said that fraud was significantly damaging their profitability. 34% of global retailers said they had lost between 5% and 10% of their e-commerce revenue to fraud in 2020. 55% of all retailers stating that they were confident in their ability to prevent e-commerce related fraud, despite only 34% of all consumers trusting in retailers’ ability to prevent said fraud. 39% of UK consumers say they would blame the retailer if their account was compromised, but as many as 67% said they would not buy on-line again from a shop where their account was compromised. When it comes to fraud prevention, two-factor authentication was recognized by consumers as the most effective tool. However, it was also ranked as the most damaging to revenue for UK and French retailers, and the second most damaging for US and German retailers. This can be attributed to the friction it can add to customer experience.