Home Business 53% of Spanish retailers trust AI’s ability to prevent fraudulent transactions

53% of Spanish retailers trust AI’s ability to prevent fraudulent transactions

53% of Spanish retailers trust AI’s ability to prevent fraudulent transactions

Adyen, the global financial technology platform, has released the latest data from its Retail 2023 report Payment fraud. The campaign, which included a study conducted in Spain, highlights the impact of fraud on consumers and retailers, as well as some security measures such as artificial intelligence, which is already trusted by more than half of Spanish retailers.

According to the company’s research, payment fraud remains a problem This is a major problem for consumers worldwide. In Spain, this study found that almost one in five (19%) have been a victim of payment fraud. On average, 160 euros were taken from each victim.

For their part, 33% of retailers confirm that fraud attempts have increased in the last year. Almost a third of retailers (30%) admit that fraudsters target their business by setting up a mock website to intimidate their brand and deceive their customers. However, up to 60% of retailers believe their fraud prevention systems are effective today, while only 24% say they are investing in fraud prevention and risk management systems this year.

As fraud cases increase, consumer sentiment changes. The survey found that 62% of respondents believe security is becoming increasingly important when shopping online due to the increasing risk of fraud. Additionally, an overwhelming 89% of consumers expressed a desire for retailers to better communicate fraud protection measures.

Consumer reaction and a major challenge for retailers

In an environment of rising inflation and rising costs of living, consumers and retailers are struggling with the impact of fraud. The survey of 1,000 consumers in Spain revealed several notable trends:

  • Only 37% of consumers look at the website URL to make sure it is not suspicious before making a purchase.
  • 37% of consumers like it when companies ask them to prove their identity (using two-factor authentication) because it gives them trust.
  • 34% describe themselves as conservative towards new payment methods due to fear of fraud.
  • 36% do not allow their devices to store payment data because they are afraid of fraud.
  • 40% of retailers say fraudulent transactions and chargebacks cost their business significant costs.
  • 31% of retailers say they will double the size of their fraud and risk team.

Although 33% of Spanish companies believe that payment fraud attempts have increased in their company in the last 12 months, it is likely that this figure is lower since companies have been investing in security against the increase in cyberattacks since 2022, this figure was around 12 Points higher than in 2023.

To combat these threats, Retailers have fraud prevention systems in place, whose effectiveness is recognized by more than half of Spanish companies (60%); But they are also leveraging the power of artificial intelligence (AI) to prevent fraudulent transactions in their stores (53%) or using chargeback management software to manage and reduce the costs associated with fraud (52%).

Adyen emphasizes this It’s important to stay one step ahead of fraudsters through technology-enabled solutions. The company encourages companies to choose fraud prevention models tailored to their specific needs, leveraging machine learning and personalization to detect unusual behavior and differentiate between legitimate buyers and malicious actors.

Adyen commitment to security and compliance

Adyen continues to highlight It is important to stay up to date with the regulations and industry trends for effective fraud prevention. By partnering with a global fintech expert like Adyen, companies can adapt their fraud management strategies to regional nuances, ensuring both security and compliance.

“Adyen’s strong commitment to fighting fraud is underlined by the fact that almost 9 in 10 Spanish consumers want to know better what retailers are doing to protect them from fraud, highlighting the urgent need for improved security measures.” It says Juan José Llorente, Adyen Country Manager for Spain and Portugaland adds: “Adyen’s commitment to security and compliance is reflected in our ongoing efforts to stay abreast of industry regulations and new trends, ensuring that organizations can confidently navigate the complex fraud prevention landscape.” ».

The study conducted by Adyen provides insight into the challenges and opportunities related to payment fraud in Spain and serves as a call to action for retailers and consumers to work together to create a safer online shopping environment.

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