E-commerce merchants must prioritize fraud prevention or run the risk of losing customers long term. This according to a new survey from security products provider Sift that aims to look at how fraud affects consumer trust and loyalty. The poll of 2,000 U.S.-based consumers found fraud plays a major role in causing friction and loss of trust between consumers and brands.
"A key component for successfully keeping customers happy is providing them a secure experience while they interact with a brand’s site," said Kevin Lee, a trust and safety architect with Sift, in comments on the survey. "As fraudsters become more sophisticated in how they carry out their attacks, retailers continue to battle ongoing issues in keeping legitimate users secure on their sites — putting long-term customer trust and revenue growth at risk."
Among the key takeaways of the research:
- Consumer abandonment due to fraud is highest among travel and electronic markets. In fact, 60 percent of consumers polled said they would switch to another travel site if they experienced payment fraud.
- Consumers don’t trust brands to protect them and 56 percent of survey respondents said they're most afraid of payment fraud over other types of fraud such as account takeover, fake accounts, and fake content.
- Only 17 percent of respondents feel brands are equipped to protect them from fraud.
- Consumers think the brand shoulders most of the blame for fraud. When a fraud event occurs, they blame the brand first — before banks, credit cards, payment processors, or themselves.