Vigilance Security Magazine: ONS Retail Report: Online shopping grows, but consumers need to be aware of fraud risks

August 19, 2016 — ONS Retail Report: Online shopping grows, but consumers need to be aware of fraud risks

Robert Capps, VP at NuData Security discusses the growth in online shopping and warns that consumers need to be aware of the risks associated in this Vigilance article.

“While we can all agree that it’s good to see growth in the economy, lower prices and improving consumer confidence (especially following Brexit), in our business we always look at this kind of news with mixed feelings.

The parasitical nature of fraud is that it follows its host. At the risk of sounding like party poopers, accompanying these growth numbers is the inevitable rise in fraud. Much of this growth will be in the online economy where consumer awareness of risks is questionable at best.

According to the new ACI 2016 Fraud Report,almost one in three UK consumers (29%) has been a victim of card fraud in the last five years, with much of that fraud perpetrated by fraudsters who made online purchases using hacked or stolen card details. Just as chilling, is the figure that a full 17% have been victimised multiple times.

Mobile shopping is ubiquitous, and, so the thinking goes, why wouldn’t consumers avail themselves of all of these modern conveniences? It’s the modern era, after all. Measures taken to protect vendors and customers are seen as barriers, and in many cases it’s not just perception, these transactions can be full of needless friction that target good customers just as often as the bad ones.

Smart merchants are making online shopping even more convenient than bricks and mortar shopping, and those that haven’t got a good online strategy are slipping into memory. With drop shipping there’s not a long wait, there’s more selection online, no lines and no pushy sales people to fend off.

For the complete article, go here.