Consumers do not trust brands on ecommerce fraud: Study

New Ideas in MarketingEssential news for marketers, summarised by YouGov
August 26, 2021, 5:23 PM UTC

Riskified – an ecommerce enablement and fraud-prevention solutions provider – surveyed 4,000 consumers and 400 retailers across the UK, US, France and Germany.

While half of UK retailers believe they are doing enough to prevent ecommerce fraud, only 17% of customers share that confidence. 55% of all retailers reported being confident in their ability to avoid ecommerce related fraud. In contrast, only 34% of all customers trusted in retailers’ ability to prevent such frauds.

Around 51% of respondents believe that retailers would find it more challenging to prevent fraud over the next year. Additionally, in case a customer account is compromised, 39% of Britons would blame the retailers. Around 67% of respondents would also stop buying from the shop where their account was compromised.

Riskified’s chief revenue officer, Peter Elmgren, said, “It’s no surprise that the rapid growth of e-commerce has also led to a rise in e-commerce fraud, and as our research shows, the impact is significant for both retailers and consumers. Because of ecommerce fraud, 34% of global retailers reported losing between 5% and 10% of their ecommerce revenue last year.

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