Poor online sales security costs UK businesses millions
Frustration of ineffective security checks sees shoppers leave empty-handed
The economy is still taking a beating yet the problem of poor online security continues to cost it large sums of money – an estimated £200 million in the past year according to a new study by Experian.
The study showed that over £1 billion worth of transactions were abandoned last year by UK consumers frustrated at the length and complexity of certain types of online identity verification systems, some even requesting shoppers to submit physical forms of ID or contact a call centre.
Due to these difficulties, one in five transactions were given up on entirely with shoppers not even choosing to use a different retailer. This loss of potential revenue is said to have cost retailers £214 million.
While ineffective checks may cause online shoppers to become frustrated, it’s vital that sites are verified as being secure in order to reduce fraud and financial loss. Good websites will make the process as easy as possible while still offering a high level of security to its shoppers.
My advice would be to use security checks as a way to ensure a site is taking the precautions to protect its customers. Remember the verification system is there to protect your personal details, while preventing your information from falling into the wrong hands.