Fintech Security

Fraud fears are up with nearly 60% of consumers

Fraud fears are up with nearly 60% of consumers

Over half 59% of consumers are more concerned about becoming a victim of fraud now compared to how they felt in 2021, according to a report from Paysafe.

Its report found that consumers in North America, Latin America and Europe are prioritising security over convenience when making online purchases, as the impact of rising inflation and energy prices continues to fuel financial worries.

The research also found that 62% of people are so concerned about fraud that they feel it is simply an inevitable risk of online shopping, a major jump from the 45% who said the same in 2021. These fears have also caused 58% to not feel comfortable entering their financial data online to pay for goods and services, compared to the 44% who felt this way in 2021.

Another finding from the report was that 45% of people trust passwords more than biometric authentication. However, confidence in biometrics is growing, with 58% of respondents agreeing biometric authentication makes online payments more secure, up from 45% in 2021.

Despite the worries, 53% of consumers think payments are more secure than they were last year, and 44% are satisfied with the current balance between security and convenience.

Finally, the report states 69% of people feel comfortable buying from a P2P platform and 59% are comfortable with an online retailer, but only in the case the item is not more than £150.

Paysafe president digital wallets Chirag Patel said, “It’s been well-observed that during times of financial crisis, fraud rates rise. It happened during the height of the pandemic, and now, as countries around the world face varying degrees of economic hardship, consumers are right to be alert to the dangers in the online payments world.

“Respecting customers’ concerns is paramount, however striking the right balance for convenient everyday use remains critical to retain customers. Offering a variety of alternative payment methods and security options will do much to assuage consumer fears and keep financial details safe, while also protecting the consumer experience.”

Last year, a report from Paysafe found that 52% of customers worldwide are keen to see more payment options available for use at the checkout.

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