Riskified, a leading eCommerce fraud prevention solution, released a new survey of both merchants and consumers, “A Crisis of Confidence: What consumers really think about merchants’ fraud protections.” The report found stark differences in confidence when it comes to fraud prevention.
According to the survey results, most consumers do not trust merchants to prevent fraud effectively. The survey also reported drastically varying opinions on views of eCommerce fraud and whose responsibility it is to prevent fraud.
The survey was conducted with 4,000 consumers and 400 retailers spanning across the US, UK, France, and Germany. Respondents were asked questions about their views of fraud, confidence in fraud prevention, and responsibilities when it comes to overall fraud prevention in eCommerce.
According to the findings, 34% of consumers stated that they were confident in a retailer’s ability to prevent fraud, whereas 55% of merchants reported feeling confident in fraud prevention. Furthermore, the results also showed that more than a fifth of consumers had been victims of fraud in the past 12 months and believed that merchants could have done more to prevent fraud.
According to the study, 71% of respondents felt that merchants were not able to adequately prevent fraud, and as a result, 66% said they would not shop at the same store again after the fraud occurred.
On the merchant side, 29% of retailers reported that fraud negatively impacted their profitability, with merchants reporting up to 5% of losses in revenue due to fraud. The risk of fraud has significantly increased over the pandemic as well, with 82% of merchants seeing an increase in fraud over the last year. In addition, the report also states that both merchants and consumers believe that fraud will become harder to prevent for even the best eCommerce fraud prevention solutions over time.