Fraud issues show no sign of slowing down across the globe. In the UK, 36 per cent of residents have fallen victim to phishing scams in the last six months alone – leaving digital transformation consultancy Daemon to urge retailers to bolster their cybersecurity efforts.
New data from Daemon also reveals that alongside phishing scams, other common issues include credit card fraud (30 per cent) and identity theft (17 per cent).
With it becoming so prevalent, online fraud is leaving a lasting impact on trust. When asked if the fraud experienced caused them to trust the online retailer less, 42 per cent reported having significantly less confidence in the retailer.
When asked what would restore trust, 45 per cent of consumers called out quick and accessible customer support for security concerns. Other trust builders include displaying security certifications and badges from trusted third-party providers (30 per cent) and using AI to detect fraud (24 per cent), which consumers said make them feel more confident when shopping online.
Marc Peiser, principal cloud consultant at Daemon, comments: “The prevalence of scams and fraud that consumers have reported experiencing in such a short time is alarming. As customer trust becomes inseparable from their shopping experience, it’s clear that retailers must bolster their cybersecurity efforts to safeguard their customers and maintain strong relationships.”
Rising online and in-store fraud
Regarding personal finance and cybersecurity, 57 per cent of consumers consider cash the most secure payment method, followed by credit and debit cards (44 per cent) and Paypal (38 per cent).
However, the perception of payment security varies significantly by age. While only 12 per cent of Baby Boomers trust digital wallets, this rises to 26 per cent among Millennials and 40 per cent of GenZ. Meanwhile, 67 per cent of Baby Boomers view cash as very secure, compared to 50 per cent of GenZ. When it comes to Buy Now Pay Later (BNPL) 27 per cent of Gen Z see it as a secure option, compared to only 15 per cent of Millennials and nine per cent of Baby Boomers.
Peiser continues: “As retailers introduce more payment options, it’s clear that consumer preferences must be factored in. There’s also a need for greater education around the security of newer payment methods to boost adoption, especially as cash usage continues to decline.”
Although online threats remain a huge concern, in-store security risks also threaten to become a bigger problem. To combat this, 38 per cent of respondents said they would like to see an increased presence of security guards and 35 per cent want more CCTV cameras.
Another popular security measures among repsondents was using AI to support detection (14 per cent). However, 19 per cent said there was nothing no additional measures would make them feel safer when shopping in-store.
In the case of increased shoplifting cases in-store, 25 per cent of consumers believe they are unlikely to be caught and prosecuted.
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