American Express survey finds 27% of online sales end up being fraudulent

New Ideas in MarketingEssential news for marketers, summarised by YouGov
December 05, 2019, 5:30 PM UTC

The study was conducted among 1004 consumers and 400 merchants in the US.

The cost of fraudulent transactions rose by 9% to 27%, according to the 2019 American Express Digital Payments Survey. The rise in fraudulent activity comes even as businesses are increasingly looking to use a “frictionless checkout system.”

77% of merchants surveyed said they had been a victim of fraud in some manner, with stolen cards (37%) the most commonly cited form of fraud. 69% of US merchants are spending significant company time and resources for dealing with payment fraud.

While a majority of consumers (54%) said, they were a victim to fraud, around 32% said they found security procedures like PINs to be confusing and cumbersome. Consumer confidence in data security has fallen to 57% in 2019 from 63% in 2018.

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