Holiday Shopping and Ecommerce Fraud.

December 08, 2021

Socure Inc., a New York City-based provider of identity-verification and fraud-detection technology recently revealed the results of a survey that states consumers are concerned about online shopping, as they expect more fraud to occur during this current holiday season. The survey also states that consumers not only blame fraudulent sellers- they blame the marketplaces that host them as well.

Of the more than 1,500 consumers surveyed, 31% cited goods not being delivered as their biggest fear when shopping online this season. Twenty-four percent listed seller fraud, and 18% cited being sold counterfeit items. New York City-based Socure conducted its survey between Thanksgiving and Cyber Monday.

51% of surveyed shoppers also revealed they are wary of unknown or unestablished online sellers, preferring instead to opt for a more secure brand name retailer or a well known local merchant. Among the brand name stores there is Target, Best Buy and Walmart.

Not only are shoppers willing to cut out individual online sellers, the survey also revealed shoppers would be holding the marketplaces accountable if any fraud were to occur.

When asked how likely it is that they would shop again on a marketplace through which they purchased a hard-to-find luxury item that turned out to be counterfeit, 70% said they simply would not shop at that marketplace again. When asked about a case in which the same item is never delivered due to seller fraud, 72% said they would not do business with the marketplace again

Among the many types of fraud consumers experience when purchasing items online, there is abundant counterfeit and seller fraud. According to Digital Transactions, 65% of the surveyed consumers revealed they are willing to cut off a marketplace altogether after purchasing a generic, counterfeit item valued at $5 or less, and 66% of responders stated they would not be willing to make business again with the marketplace in question if the item they purchased was never delivered due to fraud.

Ecommerce fraud is abundant throughout the year, however of the surveyed consumers, 52% stated they expect even more fraud this holiday shopping season compared to 2020, 33% said they expect it to remain at the same amount. Socure revealed that among the reasons people expect more fraud, an increase in online transactions is one of the biggest factors.

In a past blog post we stated the fact that fraudsters don’t take holidays, and consumers seem to be well aware of this. There seems to be a hardline attitude among consumers when it comes to fraud. Not only sellers are under hard scrutiny, but so are the marketplaces hosting them. As a result, as a business it is always important to remain informed and alert to any and all changes in the market.

Want to learn more? Check out Digital Transaction’s full write-up of the Mastercard press release here.

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