Fraud is Changing User Experience Expectations

Fraud is Changing User Experience Expectations

February 13, 2020

By Janet Wagner for Card Not Present (Sponsored by Ekata)

The number of consumers who are aware of large-scale fraud attacks and massive data breaches is growing. Thirty-seven percent of consumers surveyed said they have had their identity stolen or had been a victim of fraud, and 90 percent worry that they will be a victim of fraud in the future. 

When it comes to user experience (UX), fraud is changing consumer expectations worldwide. Consumers in every country want fast, frictionless, and secure digital experiences. But the level of security and overall experience users expect from digital platforms differ from country to country.

UX Expectations Depend on Where Users Live

The experience for users on digital platforms differs mainly because of where they live. For example, consumers in the U.S. expect digital platforms to handle their data so that it remains secure and private. But Europe has enacted strict data security and privacy laws like GDPR, PSD2, and KYC. So, most Europeans expect digital platforms to have real-time fraud prevention measures, two-factor authentication (2FA) for remote payments, and the highest level of data privacy possible.

User Behaviors Vary from Country to Country

Online shopping habits are not the same in every country. For example, many shoppers in Asia would prefer that products be shipped to their offices instead of their homes. So for Asian consumers, the bill-to address will often not match the ship-to address. Some brands in the U.S. are popular in countries like China and Japan. Fans in these countries will often order U.S. products through a freight forwarder. 

Behavior that is normal in one country may look suspicious in another. Companies with international customers need to program fraud prevention systems so that they take regional shopping behaviors into account. Otherwise, good international customers may be falsely flagged as fraudsters.

Mobile Payments are Popular in China

Chinese citizens prefer mobile payments like WeChat over checks, cash, and credit cards. The mobile payments market in China is 50 times the size of the market in the U.S. Chinese citizens use mobile payments for day-to-day purchases and big-ticket items. 

While mobile payments are prevalent, an estimated 21 percent of Chinese consumers have a credit card. Chinese citizens with credit cards often employ 2FA for their accounts for added security. This is because Chinese credit card holders are usually held responsible for fraudulent charges should they occur. In the U.S., credit card holders can dispute charges, and merchants cover the cost of chargebacks. Chinese citizens are more inclined to employ 2FA than American citizens, so most Chinese consumers expect the digital apps they use to feature 2FA. A significant number of Americans, on the other hand, would rather not use 2FA at all. 

Consumers Want Digital Platforms to Deliver it All

Online platforms need to cater to each user based on personal preferences, interests, behaviors, and location. Download our report: “Infinite Want: Consumers Demand Speed and Security in the Digital Experience.”

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