Frauds increase in online payments

Cybercriminals and fraudsters have sophisticated their methods to compromise the security of online transactions, which is making e-commerce lose attractiveness and having a significant economic impact on consumers.

According to Retail Report 2023, carried out by Adyen, about 26% of Mexican consumers surveyed have experienced payment fraud in the last year. This figure is slightly higher than the world average, which stood at 23% in the same period.

The tactics preferred by fraudsters include creating replica websites, also known as phishing, and affiliate fraud by manipulating traffic or subscriptions.

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For Fabricio Moreno, general manager of Adyen in Mexico, This situation not only affects consumer confidence in online shopping, but also has a significant economic impact.

The latter because the average amount lost by Mexicans due to these frauds is located at approximately 3 thousand 374 pesos.

The fear of being a victim of a fraudster has led 68% of consumers to believe that online shopping is losing its appeal,” Moreno highlighted.

This is because buyers are aware of the risks and take measures to protect themselves. For example, the study found that 41% of Mexicans surveyed check the website URL to ensure its legitimacy, while 48% choose not to allow the device to remember their credit card details or debit.

In addition, 65% of consumers surveyed believe that retailers should do more to protect their customers against electronic payment fraud.

ABOUT THE 2023 RETAIL REPORT:

• Surveyed 12 thousand companies and 36 thousand consumers
• It was carried out in 26 countries
• He found that if more retailers adopt unified commerce, they can have a market of up to 1.5 trillion dollars in growth.
• 1 in 5 buyers made online purchases from foreign brands in 2022
• 73% of buyers want a better shopping experience

RESULTS ON MEXICO

• 36% of Mexican companies affirm that payment fraud attempts have increased in the last year
• 33% of Mexican companies claim that scammers have created replica websites imitating their brand
• 28% of Mexican companies affirm that their business has been the victim of a cyberattack or data leak throughout the year
• 68% of shoppers say fraudsters make online shopping unattractive
• 82% of shoppers expect retailers to better communicate their online fraud protection methods

ALSO THE TRADERS?

He Retail Report 2023 also analyzed the situation of retail stores in Mexico, which also face payment fraud attempts and other types of attacks from hackers.

Proof of this is that 39% of retailers have seen an increase in payment fraud attempts over the past year and, in that same period, 34% have suffered cyberattacks or data leaks.

Moreno highlighted that 46% of merchants recognize that fraudulent transactions and chargebacks represent a significant cost to their businesses and 25% consider the increase in fraudulent attacks to be one of the main barriers to their growth.

Despite the above, a large number of them have not sufficiently strengthened their cybersecurity strategies and they are opting for other strategies. For example, 51% use AI in fraud prevention, which represents an increase of 13% compared to 2022.

It is added that almost half of retailers will choose to increase their human resources teams by 100%.

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