Consumers in the US are keen to use more security measures in order to prevent online fraud as a result of the increasing e-commerce, according to a new report by American Express (Amex).
Titled ‘The 2016 American Express Digital Payments Security Survey, the report highlights that about eight-in-10 online consumers (78%) are willing to use a security code (CVV) for their credit card; however just 57% of merchants offer this facility for online customer transactions.
While 70% of online consumers are ready to use security questions, only 43% of merchants have this prompt available on their websites.
According to the study, over two-thirds of online consumers (68%) are ready to create a one-time password but 37% of merchants require a separate one-time password to ensure additional security.
The study, in which 1,021 consumers and 401 merchants in the US participated, further highlights that 63% of online consumers are open to create a customer profile on the merchant’s website to complete a purchase; however, less than half of merchants (46%) offer this option online.
Nearly half (48%) of consumers who shopped online last year have experienced payment fraud, which equates to approximately 80 million online consumers.
Four in 10 consumers (40%) believe that online shopping is more risky than an in-store shopping (28%). Due to payment security concerns, 42% of shoppers abandoned an online purchase.
This grows to 48% for Gen X and 50% for Millennials, which indicates that despite willing to adopt new technology at the earliest, the younger consumers are very conscious to protect their information.
Apart from consumers, merchants are also victim of online fraud, as the study shows that 60% of merchants report that they have experienced fraudulent online sales, and 25% say their level of fraud with online sales has increased this year.