Consumers Feel More Exposed Than Ever With the Increased Risk of Frauds

    Consumers Feel More Exposed Than Ever With the Increased Risk of Frauds-01

    Consumers are quite unaware of the best practices around online shopping platforms and hence, drastically becoming more vulnerable and impacted by the fraudsters.

    With the pandemic driven increased online shopping and transactions, the overall consumer anxiety around fraud observed a considerable spike – reveals a recent research study by Marqeta.

    More than 2,000 consumers were surveyed across the United Kingdom and United States to understand their experiences and attitudes around payment fraud. It was also found how they felt about the cyber risks and frauds due to the global uncertainty.

    Also Read: Digital Marketing – Focus and Budget will be Altered Post COVID-19

    The study highlighted how people have responded to digital fraud a year after drastic shift to digitalization – alongside of massive acceleration in the digital payment usage. Basically, the worry about fraud cases has risen to severe levels and this led many consumers feel that digital lives are putting them at more risk.

    About 80% of the consumers indicated their online shopping activity has increased over the past 12 months. Certainly, this is the primary factor behind making online users feel more susceptible to cyber fraud. Some of the principal findings are –

    • Nearly 65% of all consumers said they are more concerned about scam since the beginning of COVID-19 times
    • Roughly 67% of the respondents reported that they think shopping online more amid this unprecedented time has put them at a higher risk of such frauds
    • About 58% of consumers indicated that they think the risk of cyber fraud makes them less likely to try out new payment channels
    • Around 25% of the surveyed consumers have been the victims of digital fraud in the last 12 months – an increase of 20% YOY.

    In today’s digital economy, the number of times people have been affected by scams has also seen an uptick this year. Moreover, almost 43% reveals that they have been a target of phishing attempts involving payment details in 2020.

    “Our new survey shows that the global growth in online payments during COVID-19 has directly impacted the level of consumer anxiety around fraud. Consumers are getting hit more often, with twenty-five percent more people falling victim within the last 12 months than the year prior.” – mentions Vidya Peters, CMO at Marqeta.

    Also Read: Data Privacy Spending to Increase Further in 2020

    Most consumers are unaware of the best approaches for using online shopping platforms and drastically more vulnerable in this modernized era. Hence, customers aged 18-34 years (69%) are the most impacted by fraudsters today.

    With anxiety soaring rapidly, consumers are required to be more careful and rely on secured, verified platforms while shopping or making a transaction. Even banks and payments companies are implementing advanced cyber frauds prevention controls to ease the growing tensions.

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    Sudipta Choudhury
    Marketing professional with experience in B2B and MR industry. Skilled in Marketing, Strategy Making, Copywriting and Content Creation, Sales, and SEO with excellent Communication Efficiency. Holding dual master's degree focused on Marketing from IBS, Pune and ICFAI University.