Retailers' heavy handed fraud protection leads to loss of sales

Online retailers battling with fraud prevention are losing out on genuine sales by treating their customers like criminals, according to a new report by ThreatMetrix.

While the cost of online orders lost to fraud is said to be around £2.92 billion, ThreatMetrix says that retailers could be losing out on an ever greater sum by employing fraud protection services that can’t identify genuine customers. According to the report, titled ‘Are You Treating Your Customers Like Criminals’, authentication protocols and password prompts which cause basket abandonment could be as much as ten times more costly than fraud.

Retailers' heavy handed fraud protection leads to loss of sales