Over One in Five Online Shoppers Have Been A Victim of Online Fraud

A new survey has highlighted the concerns that consumers have when it comes to online shopping. The survey was commissioned by eWise Payo the only exclusively online UK bank. The survey worryingly revealed that over 21%, or one fifth of British adults who have bought online have been victims of online fraud.

The research also revealed that 88% of regular online shoppers have either fallen victim to online fraud or are scared that this will happen to them at some time. While 95% said that they had purchased online, with well over 2/3 of those buying goods online at least once in a month.

A statement saying that the consumer was concerned about the security when they were paying for services and goods online was put into the survey to see how many agreed with it, and 69% did. 54% of shoppers also revealed that they had abandoned a transaction halfway through due to fears over the security of their private details.

Interestingly, when online shoppers were asked if they agreed that they are concerned about security around making online purchases, the proportion which stated they are increased with age. Respondents were asked to pick the two payment methods they feel are most secure when making online purchases. Only 20 percent made debit cards one of their top two choices. Commenting on this finding, John France, managing director at eWise payo, said: “This is a worrying sign, it seems banks and consumers have drifted apart.

“The figures we have highlighted are alarming. In spite of the time and money invested in protecting consumer’s online security, retailers’ websites are still being hacked and fraudsters continue to win the battle.”

Almost two thirds (64 percent) of online shoppers have abandoned a purchase due to issues relating to speed and difficulty in making a payment. 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. “Credit and debit cards were designed for the face-to-face environment, and the additional security measures only slow the payment process.”

72 percent of online shoppers who have online banking access 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 online banking account, without sharing account information with the merchant.

In January 2011, eWise launched eWise payo, the first and only bank inclusive UK Online Banking ePayments (OBeP) solution – the safest and fastest online payment technology. 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(2). To use eWise payo, customers are directed straight to their bank’s website where they will log in using their existing additional security measures only slow the payment process.”

72 percent of online shoppers who have online banking access 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 online banking account, without sharing account information with the merchant.

In January 2011, eWise launched eWise payo, the first and only bank inclusive UK Online Banking ePayments (OBeP) solution – the safest and fastest online payment technology. 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(2). To use eWise payo, customers are directed straight to their bank’s website where they will log in using their existing account credentials. Once in their online banking application, consumers select from any account with available funds and confirm the payment. eWise technology enables the secure payment, leveraging the UK’s Faster Payments network, thereby generating a near immediate payment for the merchant.

France added: “eWise payo is the answer to the industry’s demand for improved security; the bank demand for innovation; the consumer demand for control and the merchant demand for lower costs.”

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2130 adults. Fieldwork was undertaken between 17th – 18th March 2011. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).