Probability for fraud is high for quick service restaurants, Sift data shows

Friday 11 October 2019 10:19 CET | News

Consumer expectations for convenience have increased significantly across a variety of markets, and quick-service restaurants (QSRs) are no exception, according to Sift data.

About 33% of today’s dining experiences involve some type of smart device, making fast food even faster with pre-order options, in-house kiosks, and new services competing in the delivery space. The rise in these convenience-driven programs also introduces possible security gaps that put consumers at greater risk of fraud. Sift surveyed consumers across the US about their use of these services, their experiences with QSR mobile apps, and their concerns about fast food fraud.

QSR customers expect experiences that are fast and seamless, with almost 40% of consumers reporting their number one frustration when ordering online and through mobile is experiencing a complicated login process and/or too many steps associated with accessing their account to place an order. However, only 13% of survey respondents cited delayed order delivery as a factor when deciding to place future orders from the same QSR or third party delivery app.

62% of survey respondents are concerned that their interactions with QSRs will lead to some type of fraud, whether it’s stolen payment information, account takeover, hijacked loyalty rewards points, or fake reviews. 49% are most concerned about their credit card data being stolen and 41% are worried about account takeover (ATO).

Alarming for QSRs are the 49% of respondents who said they’d hold the restaurant or delivery service directly responsible for any fraudulent activity resulting from an interaction with one of the two. Finally, 67% of respondents would reconsider placing a future order with a business if their accounts were compromised in any way.

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Keywords: Sift, ATO, fraud prevention, restaurants, QSR, food delivery, study, credit card data, fake reviews
Countries: World