Security is a growing pain in e-commerce to the extent that, according to a study; consumers doubt the ability of brands to protect their data.
Because there’s a lot of exchange of private data during transactions, online store owners must ensure all customer information they collect doesn’t get into the hands of fraudsters. And the effects of a breach are detrimental; apart from a bad name, brands end up losing customers, they have spent resources to attract and convert.
Shift, a cybersecurity firm, embarked on a study to analyze the effects of cyber breaches on consumer confidence and loyalty in brands. The market research investigated 2K US shoppers, and one noteworthy finding was that; cyberattacks is a major cause of ruined customer-retailer relationship and the loss of confidence in brands.
“Security is central to ensuring customer satisfaction. Brands must ensure security throughout the shoppers’ journey and protect any information stored in business databases are from the snooping eyes of fraudsters,” said Kevin Lee of Swift.
A secure interaction matters to customers because of the effects of a successful attack as detrimental as loss of finances.
Other significant findings of the study were that;
Nearly half of customers— 55 percent— cited payment fraud as their greatest fear over other forms of fraud.
Only 17% of consumers believe e-commerce businesses are prepared to offer them a secure experience.
Customers feel merchants are the loose end in the payment security circle. Businesses take the blame before banking institutions, credit card providers, processing partners, or the shoppers themselves.
Travel and Electronic Industries record the highest amount of fraud-caused shopper abandonment rates. More than half of the interviewed customers admitted they’d consider another travel website if they suffered any payment fraud.
New Cyber Threats as Fraudsters get More Creative
Businesses must now prepare for the new syndicates known as Megacart groups who specialize in formjacking or credit card skimming. The attack involves adding malware to shopping carts to steal a copy of the customer data they enter in e-commerce web forms.
According to a different study by Arxan and Aite Group, over 80 percent of sites have been formjacked. All compromised firms were found to have no in-app security layers like code obfuscation or tamper detection, which puts long-nurtured customer confidence and income growth at risk.
Security is vital in ensuring customer satisfaction. A secure interaction is important in protecting client data and maintaining customer trust, which then translates to long-term business.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest-rated chargeback insurance providers in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.