New data from digital transformation consultancy Daemon reveals that cyber security issues continue to plague Brits, particularly whilst shopping online. In the last 6 months alone, 36 per cent have fallen victim to phishing scams, with other common issues including non-delivery of items once purchased (33 per cent), credit card fraud (30 per cent), counterfeit goods (28 per cent) and identity theft (17 per cent).
These challenges vary by demographic. While one quarter (25 per cent) of GenZ have faced identity theft, only 9 per cent of Millennials and Baby Boomers have experienced the same. Meanwhile, 57 per cent of Baby Boomers have been targeted by phishing scams, compared to 36 per cent of Millennials and 31 per cent of GenZ.
Online fraud is leaving a lasting impact on trust. When asked if the fraud/scam/theft experienced caused them to trust the online retailer less, 42 per cent reported having significantly less confidence in the retailer. When asked what would restore trust, 45 per cent of consumers called out quick and accessible customer support for security concerns. Other trust builders include displaying security certifications and badges from trusted third-party providers (30 per cent) and using AI to detect fraud (24 per cent), which consumers said make them feel more confident when shopping online.
Marc Peiser of Daemon comments: “The prevalence of scams and fraud that consumers have reported experiencing in such a short time is alarming. As customer trust becomes inseparable from their shopping experience, it’s clear that retailers must bolster their cyber security efforts to safeguard their customers and maintain strong relationships.”
Insecurity extends to payment methods
When it comes to personal finance and cyber security, over half (57 per cent) of consumers consider cash the most secure payment method, followed by credit and debit cards (44 per cent) and Paypal (38 per cent).
However, perception of payment security varies significantly by age. While only 12 per cent of Baby Boomers trust digital wallets, this rises to 26 per cent among Millennials and 40 per cent of GenZ. Conversely, 67 per cent of Baby Boomers view cash as very secure, compared to 50 per cent of GenZ. When it comes to Buy Now Pay Later (BNPL) 27 per cent of GenZ see it as a secure option, compared to only 15 per cent of Millennials and 9 per cent of Baby Boomers.
Peiser continues, “As retailers introduce more payment options, it’s clear that consumer preferences must be factored in. There’s also a need for greater education around the security of newer payment methods to boost adoption, especially as cash usage continues to decline.”
While online threats remain a concern, in-store security risks are on the rise, significantly impacting consumer safety. In-store, 38 per cent would like to see an increased presence of security guards, rising to 43 per cent among Baby Boomers. 35 per cent want more CCTV cameras, a figure that jumps to 38 per cent for GenZ. Other popular security measures include AI to support detection (14 per cent) and smart vending machines, with interest from 20 per cent of GenZ. However, 19 per cent said there was nothing no additional measures would make them feel safer when shopping in-store.
In the case of increased shoplifting cases in-store, a quarter (25 per cent) of consumers believe they are unlikely to be caught and prosecuted.
Peiser adds, “Neglecting to implement robust security measures is damaging the in-store shopping experience. If consumers feel unsafe, retailers risk losing a loyal customer base. Retailers need a holistic approach to security that integrates both in-store and online protections, or they may face lasting changes to consumer behaviour.”
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