E-commerce businesses that are able to build meaningful relationships with digital customers will likely experience continued growth as the marketplace expands, according to a new report. In the 2019 Global Identity & Fraud Report, global data aggregator Experian found that 70 percent of digital consumers would share more personal data with organizations that provide greater online security and convenience.
Yet, the research found that even those marketplaces that are effectively mitigating online fraud have potentially left a full third of their digital customers vulnerable.
“Fifty-five percent of businesses surveyed reported an increase in online fraud-related losses over the past 12 months, predominantly around account origination and account takeover attacks—both particularly damaging to brand reputation,” the authors wrote. “Even though fraudsters are reportedly growing more adept at exploiting weaknesses in the new services and features that businesses are adopting, nearly 75 percent of businesses globally reporting an improvement in their online security over the past year. However, businesses have experienced increased fraud losses and new fraud attacks during that period as well—leading us to believe businesses may be investing in the wrong capabilities.”
The report is the result of extensive research conducted between July and November 2018, during which time Experian surveyed approximately 10,892 consumers ages 18 – 69. Additionally, 1,097 businesses across banks, financial institutions, card and payment providers, online and mobile retailers in 21 countries participated in the study.