This emerging threat has established itself as the second biggest risk to the sector, behind only the reduction in purchasing power caused by inflation. But retail is not the only segment that has been massively impacted by fraud.
In this article, we will detail the data revealed by studies and list the implications of these practices for the market in various segments and how companies can protect themselves against these threats. Stay tuned!
The impact of fraud in numbers
Financial fraud has a significant impact in many locations around the world, affecting consumers and financial institutions across the board. According to IBM’s 2022 Global Financial Fraud Impact Report , the numbers reveal an alarming reality.
One striking fact is that global consumers have migrated on a large scale to the use of credit cards and digital payments. However, this technological advancement has also brought with it an increase in attempted fraud in financial transactions.
US citizens stood out as the main victims, suffering more frequently and at higher costs. On average, US consumers faced annual losses of about $265,000 resulting from fraudulent financial charges made by unauthorized third parties.
Specifically, when it comes to debit card fraud, US citizens lead the statistics in terms of victims. Furthermore, when asked about their experiences with digital payment apps, they were also heavily involved in cases of credit card, banking and digital payment fraud.
Globally, credit card fraud is the most common type of financial fraud in all countries surveyed. In Brazil, approximately one-third of respondents (31%) reported having been victims of this type of fraud, highlighting the need for greater attention and digital validation measures in the country.
Concerns about financial security are shared by many. Consumers in Brazil and Singapore are the most concerned, with 85% of Brazilians and 79% of Singaporean respondents citing specific concerns about credit card fraud.
However, it is important to highlight that a substantial proportion of all countries surveyed also expressed concerns about:
Credit card fraud;
Improper use of debit card;
Digital payment fraud;
Digital and bank wallet theft.
On a positive note, most adults across all countries are more likely to buy from companies that have fraud prevention technology in place. This preference is especially prominent in Brazil and China, where 91% and 90% of respondents, respectively, would choose companies that have fraud protection measures in place.
It is worth noting that the impacts of these frauds russian phone numbers are not only direct and visible, as there are other, much less noticeable problems that can cause problems in the medium and long term for a business. And in the next topic we will explain in more detail. Check it out!
Cost of these frauds to your business
The impact of fraud in Brazil is enormous for both consumers and businesses. A survey revealed that 68% of Brazilians have shown apprehension regarding the digital environment, considering the risk of fraud as a factor that makes online shopping less attractive.
This fear also influences their payment choices and digital consumption habits, with 38% of respondents adopting a conservative stance, avoiding new forms of payment and online transactions for fear of possible fraud.
To protect themselves against possible attacks, 31% of Brazilians adopt a cautious approach, not allowing payment data to be saved for future purchases.
This feeling of insecurity when using automatic form responses can affect the user experience, making it slower and negatively influencing the conversion rate of new customers.