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Ecommerce fraud prevention solution provider Riskified has released a survey revealing the enduring financial impact of fraud and how it’s perceived in the eyes of shoppers versus retailers.

In the UK, 82% of retailers said that they have seen an increase in fraud attempts since the pandemic began. Card Not Present (CNP) fraud having the biggest negative impact on revenues (60%) followed by Promo Abuse (48%). 26% of global retailers saying that fraud is significantly damaging their profitability. Worse still, 34% of global retailers said they had lost between 5-10% of their ecommerce revenue to fraud in 2020.

A confidence gap between retailers and consumers globally was also unearthed. More than half (55%) of all retailers stating that they were confident in their ability to prevent ecommerce related fraud. Despite only 34% of all consumers trusting in retailers’ ability to prevent said fraud. In the UK specifically, 27% of online consumers said their concerns over online shopping continue to grow. Furthermore, 51% of consumers believe that retailers will find it even harder to prevent fraud over the next year.

Long-term brand impact was a prominent factor for consumer confidence in online shopping too. Not only did 39% of UK consumers say they would blame the retailer if their account was compromised. More importantly, 67% said they wouldn’t buy online again from a shop where their account was compromised.

The eConfidence benchmark survey was fielded in March 2021. A total of 400 eCommerce professionals (merchants) were surveyed in four countries (US, UK, Germany, France) along with 4000 online shoppers (consumers) in the same countries.

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