Even though eCommerce fraud is up 15% from last year, it appears that consumers still enjoy the convenience of online shopping. So that may explain the results of a recent American Express survey, which shows that consumers are willing to take extra security steps to ward off online payment and ecommerce fraud for both themselves and the merchant.
In the 2016 American Express Digital Payments Security Survey, which sampled 1,021 U.S. consumers and 401 merchants, both parties indicated that payment security is a big deal, especially with the steady growth of eCommerce.
And that makes sense, considering that merchants and consumers alike have experienced a significant amount of payment fraud in the last year. Nearly half (48%) of consumers who shopped online in the last 12 months experienced payment fraud and 60% of merchants experienced fraudulent online sales.
Additionally, 42% of consumers reported abandoning shopping carts because of payment security concerns. Merchants, on the other hand, reported that 31% of their online sale transactions in the past year were abandoned by customers before a sale was completed.
What Security Steps Are Consumers Willing to Take to Thwart eCommerce Fraud?
Despite security concerns, consumers want to continue making online purchases and are, therefore, willing to take extra precautions. And that’s good news for merchants – who then can capture more online sales and increase trust among their consumers.
Some of these steps include:
- Entering a security code for their credit card (CVV)
- Answering security questions
- Creating a one-time password
- Creating a customer profile on the merchant’s website
Fortunately, credit card companies are taking their own security measures as well. American Express, for example, offers various features to help Card Members monitor their account information and help prevent fraud at the point of sale. “This includes one-click alerts to confirm charges via text, email and our mobile app,” said Mike Matan, Vice President, Industry Engagement, Product and Marketing for American Express’ Global Network Business, in an American Express news release.”
Learn More about How to Enhance eCommerce Security
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