Consumer fears over online credit card fraud

A survey recently conducted has highlighted consumer’s concerns with online shopping. The YouGov survey showed that one fifth of UK shoppers who have made an purchase via the web have been a victim of online fraud. And furthermore, in the survey

which was commissioned by Ewise, a staggering 88% of consumers are worried that something damaging will happen if they shop online.

More than two thirds(69%) agreed with the statement, ‘I am concerned about security when paying for goods online.’ And over half(54%) admitted to abandoning purchases due to fear of giving away security details. In particular results showed the older the participant the more reluctant they were about making online purchases.

John France, managing director at ewise admitted, ‘this is a worrying sign, it seems banks and consumers have drifted apart.’ He continued, ‘the figures we have highlighted are alarming. In spite of time and money invested in protecting consumer’s online security, retailer’s websites are still being hacked and fraudsters continue to win the battle.’

Further research showed that 64% of online shoppers abandon a purchase due to difficulties of making a payment and time taken.

France added ‘it seems every stakeholder in the transaction suffers; the consumer abandons the purchase through frustration, the merchant doesn’t process the sale, and the payment isn’t processed by the bank.’

So what to do? Whilst these findings can help business’ to better understand consumers’ fears with using their credit cards, the information should also prompt online business’s to take additional steps to build confidence in their brands and minimize any potential losses as a result of growing concerns of shopping on the Internet.

The survey did also conclude that 72% of online shoppers advised that they would feel more secure if their bank provided a payment option that allowed them to pay for goods online directly from their bank account, without sharing account information with the merchant.

In January 2011, Ewise did just that by launching Ewise payo, the UK Online Banking e payments (OBeP) solution. The solution enables the consumer to initiate secure and private payments for goods and services or bills online, without having to provide personal financial information to any third parties.