As online retail grows, so does fraud and fraud awareness

Wednesday 19 November 2014 11:06 CET | News

As online retail revenue is increasing globally, and is expected to total almost EUR 2 trillion during 2014-2018, fraud is also increasing, a recent report shows.

According to a study conducted by yStats, the potential for fraud causes many prospective shoppers to stay away from online sales, and is forcing merchants to establish fraud prevention measures.

Findings reveal that the growth of B2C ecommerce is affected by fraud, with more than a third of consumers worldwide who do not yet shop online stating that their fear for personal data breach or lack of trust to online payments is the reason. Distrust is especially high in European countries, while consumers in the US and China have more confidence in the online purchase process.

One of the major trends in ecommerce security is that fraud is expanding beyond payments into account takeovers, which are responsible for an increasing share of total ecommerce fraud.

Another major trend is that fraud follows the consumer movement from shopping on computers to the use of mobile devices. The security concerns of merchants and consumers present a challenge to faster adoption and growth of m-commerce and mobile payments. Over a third of consumers worldwide do not shop or pay with mobile devices because of security concerns, while over half of merchants consider mobile commerce to be riskier than general ecommerce.

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Keywords: online retail, online payments, ecommerce, web fraud, online security, m-commerce, mobile payments
Categories: Fraud & Financial Crime
Countries: World
This article is part of category

Fraud & Financial Crime