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Fraud concerns abound as more businesses pivot online

Adrian Flores
Adrian Flores
20 August 2020 1 minute readShare
Fraud concerns

Research has found that most consumers shopping online are concerned about security threats as more businesses pivot their services online in response to COVID-19.

The Capterra research found that cyber security remains a huge concern for consumers when purchasing online, with 81 per cent concerned about online security threats when shopping.

In addition, around a third (31 per cent) have already been victims of an online shopping scam.

COVID-19 motivates consumers to purchase goods and services online. The research revealed 90 per cent of respondents shopped online at least once this year, while 62 per cent of Australians plan to shop online more than they did before the virus.

However, in a warning for businesses moving their services online, more than half (56 per cent) of respondents said they will leave an online shop if it doesn’t offer their preferred payment method.

The research led Capterra to suggest that e-commerce brands need to educate Australian shoppers on how they’re mitigating cyber threats.

Further, businesses should encourage their shoppers to follow secure passwords practices when creating a customer account that will reduce email phishing attacks and the potential for malpractice.

“While there is still a desire from consumers to shop in-store, retailers can take the increase of online shopping in Australia as a cue to invest more in their digital shopping services,” said Capterra content analyst Anna Hammond.

“How consumers will choose to shop post-COVID-19 is difficult to predict, but one thing is for certain: brands that provide the most seamless and informative online experience now will better position themselves to succeed during a time of uncertainty.”

The survey of 1,020 Australians was run between 14 and 22 July. It surveyed people living in Australia over 18 coming from various employment statuses, business sectors and levels of seniority.

Fraud concerns abound as more businesses pivot online
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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