30 Oct 2019 More than one in five (22%) people have fallen victim to fraudsters when shopping online, according to new findings from secure payments provider Shieldpay. This equates to some 11.5 million Brits who have, at some point in their lives, been defrauded when purchasing an item online.
The cost to people’s pocket is significant: on average UK shoppers are defrauded by £683 with 1 in 10 (11%) losing more than £1,000. For those who have been a targeted more than once, the value jumps to £1,460, more than double that lost by people who have been defrauded just once.
Online fraud is often associated with older members of society, but the Fraud Tracker research shows it’s actually younger generations who are frequently targeted and defrauded by larger sums. A quarter (25%) of millennials, those aged 18-34, have been defrauded while shopping online at an average cost of £767 and nearly one in six (16%) have handed over more than £1,000 to fraudsters.
Indeed, research by Lloyds Bank published last month revealed millennials are falling victim to all types of online fraud at a greater rate than any other age group.
Shieldpay’s patent pending payments process mitigates the risk of online shopping fraud by fully verifying the identity of all parties, holding funds securely and only releasing them once both parties confirm they are happy.
Tom Clementson, from Shieldpay, said: “It takes just moments to go online, order an item and see the money taken from your bank account. As we lead increasingly digital lives, this has become as normal as buying something over the counter. However, it also takes just moments for fraudsters to target unsuspecting consumers to part them from their hard-earned money and their methods are becoming more advanced by the day. The sky-high levels of fraud the UK is currently experiencing shows no sign of slowing down soon but this can’t go on. Fraudsters have had it good for too long.
“Initiatives like confirmation of payee and strong customer authentication have been kicked into the grass to the benefit of retailers but to the detriment of consumers. People must take their online safety into their own hands and there is technology already available to help. Alongside that, simple steps like only shopping on trusted websites, checking the website is secure and never clicking on links in unexpected emails go some way to keeping money safe.”