Failing to tackle online fraud is increasingly damaging the brand reputation and the bottom line for thousands of businesses around the globe. Almost two-thirds of all ecommerce brands (61 per cent) 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 per cent (and 41 per cent in the UK) say their brand image has been affected by fraudulent activities. This varies by sector – 40 per cent of retailers, 36 per cent of those in travel, 45 per cent in digital goods, and 38 per cent in marketplaces.

Overall, fraud has increased for 74.8 per cent of companies around the world, with some regions suffering more than others. The UK has seen the biggest increase, at 84 per cent.

The results of such negative publicity can be devastating for e-commerce brands.

Fraud also negatively impacts stock prices for 20 per cent of larger companies, and across the board, responders said fraud affected growth the most, at 51.8 per cent.

One in four say they lose over $15 million (€13.8m) to fraud yearly, and over half (51.8 per cent) say fraud stifles company growth, leading to broader knock-on impacts. Customer loyalty also takes a hit for 37 per cent of companies, further impacting reputation.

Interestingly, 31 per cent (39 per cent 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.

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Categories: Articles, Consumer Behaviour, Research

Tags: ad fraud, fraud