Retailers braced for fraud spike

Over 40% of Irish retailers anticipate a spike in fraud attacks on their businesses in the business shopping period over final quarter of the year.

That’s according to new research commissioned by Adyen, the payments platform.

The news comes at a time when Irish retailers are already feeling the effects, with 46% falling victim to fraud and data leaks during the pandemic.

Adyen’s survey uncovers insights from Irish retailers and shoppers, drawing on the lessons learned from the pandemic.

The fact that such a high proportion of retailers in Ireland have fallen victim to fraud is a concern given that the upcoming 2021 peak period, (Black Friday, Christmas, and the January sales), will likely attract record numbers of shoppers online.

Worryingly, only 38% of retailers believe their fraud prevention systems are effective.

With retailers depending on the peak period, to boost annual retail revenues, fraud attacks at this time can be even more catastrophic.

This year, when retailers have been tackling supply chain disruption, staff shortages, and the lingering effects of the pandemic, 35% of Irish retailers expect peak season to ‘make or break’ their businesses.

Despite challenges, Irish retailers are optimistic about the peak season and the possibility of shoppers returning to stores.

The majority (52%) expect that physical stores will play a more important role in this peak period. Shoppers appear to agree; only a third of consumers (33%) say they are likely to avoid shopping in stores following the pandemic.

However, retailers must focus on delivering stand-out experiences while protecting against fraud, or customers will vote with their feet.

Nearly 80% (78%) of Irish consumers said they will not shop with a retailer again if they have a bad experience, either in store or online.

Consumers also have high expectations for the hospitality sector when it comes to fraud protection, with 66% of Irish consumers believing that restaurants, bars and cafes need to do more to protect them from fraud.