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Online Fraud Threatens UK Ecommerce Brand Reputation
“A company’s reputation means everything and must be protected as if it’s a matter of life and death – from a business perspective, that’s exactly what it is,” Ravelin CEO Martin Sweeney said.Â
Failing to tackle online fraud is increasingly damaging the brand reputation and the bottom line for thousands of businesses around the globe, new research reveals.
Almost two-thirds of all ecommerce brands (61%) have found themselves at the centre of highly damaging public media storms when fraud hits, according to fraud prevention company Ravelin’s Global Fraud Trends 2024 Survey.
Of those polled, 40% (and 41% in the UK) say their brand image ha been affected by fraudulent activities. This varies by sector – 40% of retailers, 36% of those in travel, 45% in digital goods, and 38% in marketplaces.
Overall, fraud has increased for 74.8% of companies around the world, with some regions suffering more than others. The UK has seen the biggest increase, at 84%.
The results of such negative publicity can be devastating for e-commerce brands.
Fraud also negatively impacts stock prices for 20% of larger companies, and across the board, responders said fraud affected growth the most, at 51.8%.
One in four say they lose over $15m (£12m) to fraud yearly, and over half (51.8%) say fraud still stifles company growth, leading to broader knock-on impacts.
Customer loyalty also takes a hit for 37% of companies, further impacting reputation.
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Interestingly, 31% (39% in the UK) of respondents polled by Ravelin cited worries about public image as an obstacle to fighting fraud more efficiently.
The key concern was adding friction to the customer journey, which impacts loyalty and reputation.
“In a highly connected world where reputations can be globally trashed with just a few keystrokes, brands must do more to mitigate against fraud,” Ravelin CEO Martin Sweeney said.
“A company’s reputation means everything and must be protected as if it’s a matter of life and death – from a business perspective, that’s exactly what it is.”
