Seller-related fraud is a deal-breaker when it comes to keeping customers; 72% of consumers said that if an item was not received due to seller fraud, they would never do business with that platform again, a report by Socure has revealed.
The provider of digital identity verification and fraud solutions Socure surveyed more than 1,500 consumers for its Consumer Online Shopping Fraud Survey 2021: Holiday Edition.
Socure said the survey acts as a stark warning for e-commerce platforms that consumers have zero tolerance for seller-related identity fraud and will not return to a platform if it occurs. Considering that only 27% of consumers would abandon a platform if an item was not delivered on time, compared to the 72% who would abandon the platform following seller-related fraud, indicated that is a deal breaker for consumers.
The report revealed that 51% of consumers are reluctant to do business with smaller merchants due to the perceived risk of fraud.
According to the research, the top three concerns consumers have regarding shopping online are not receiving goods (31%), goods not being delivered on time (28%), and seller fraud (24%). Socure said these findings indicate consumers are dubious about the safety of shopping online this season, and e-commerce platforms need to be prepared.
Socure’s survey also reported that the uptick in e-commerce volume will be accompanied by higher fraud risk, with 85% of consumers anticipating more or the same amount of fraud this year as compared to 2020. Socure is not the only voice of warning in this area, Arkose Labs has also predicted a 60% increase in online fraud attempts over the holiday season.
The research also revealed that these expected increases in fraud risk are due to technology risks within e-commerce platforms which ranked as the second biggest driver (21% of consumers), right after increases in online transactions (31%).
As such, Socure said the time is now to put controls in place to better assess the safety of allowing buyers and sellers to transact while protecting brand reputation.
Johnny Ayers, Socure CEO and founder, said, “Existing e-commerce fraud solutions are not designed to solve the seller fraud problem or prevent counterfeit items from being sold because they are transaction-based.
“Socure, on the other hand, is able to not only verify if the person conducting business is who they say they are, but also verify if they are a known fraudster and it’s safe for them to enter into a business’s ecosystem. Having the ability to do both is critical to maximize marketplace health and protect consumers from fraudulent behaviour online.”
Copyright © 2021 FinTech Global
Copyright © 2018 RegTech Analyst