Digital platforms from every corner of the web welcomed new customers amid the lockdowns and restrictions during the pandemic. More than 80% of United States consumers now use the internet every day to conduct basic errands or scroll through social media. While most consumers look favorably upon the many conveniences digital marketplaces offer, they still have valid cybersecurity and data privacy concerns.
Fifty-five percent of consumers admit that they do not store their payments credentials due to wariness of security protocols, and 57% are likely to abandon an online platform if they feel their information is not adequately protected, according to PYMNTS research. Easing consumers’ anxieties and gaining clients’ trust means businesses must find ethical ways to harness the power of their customers’ data. Shifting the focus to the retention of existing customers is an easy way to use databases for innovative opportunities and create new business without violating consumers’ rights.
The latest PYMNTS Digital Fraud Tracker®, done in collaboration with and supported by PayPal, examines how merchants can enhance revenues and security without compromising consumers’ data privacy.
Around the Digital Fraud Space
No eCommerce merchant was immune to the onslaught of cyberattacks that plagued businesses during the pandemic. The average online storefront experienced 344 fraud attempts in 2020, up 24% from the prior year. As a result, cybersecurity professionals incorporated a combination of artificial intelligence (AI) and machine learning (ML) technology to combat fraudsters and regain control over the digital marketplaces. These two prominent technologies have the power to decrease chargebacks and better detect fraud, making way for more seamless integration with the European Union’s revised Payment Services Directive (PSD2).
Today’s consumers demand more transparency regarding how businesses use their personal data and what information is being shared. Customers are more fretful about cybersecurity and privacy now than in the past, survey showed. A mere 31% of online shoppers are willing to share any of their data with brands. These concerns are justified, however, as another report revealed that compromised credentials led to $4.37 million in financial losses. Customer identity access management solutions offer a way for merchants to develop secure data-sharing practices for their customers and ease data privacy and security compliance for merchants.
For more on these and other stories, visit the Tracker’s News & Trends.
Corvus Insurance on the Stringent Data Regulations Landscape and How Cyber Insurance Can Protect Businesses From Virtual Threats
Businesses and their clients need to take cybersecurity precautions more now than ever before. As consumers flocked to digital channels out of necessity during the pandemic, bad actors recognized the unique opportunity that came with the increase in user profiles.
To learn more about how investments in cybersecurity insurance for businesses and their third-party vendors could help protect all participants from the repercussions of data breaches, visit the Tracker’s Feature Story.
Deep Dive: New Regulations Help Protect Consumers From Privacy Violations
More than 80% of U.S. citizens go online every day to complete basic tasks like grocery shopping or bill payments, according to the Pew Research Center. With a better understanding of how the internet works, however, consumers are rightfully concerned about risks to their data. Fraud attempts are a common source of anxiety for businesses and their customers, but now online users are uneasy with how the sites they frequent are harvesting and sharing their data. Consumer privacy laws are working to ease citizens’ minds and enforce ethical data practices, but strict regulations may sometimes create friction for companies who use customer information as a fraud prevention tool.
To learn more about how customer retention is a smoother way to drive up revenues, visit the Tracker’s Deep Dive.
About the Report