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Ecommerce Stores Upgrade Security to Improve Customer Satisfaction

According to a recent report, 95% of eCommerce merchants are either already improving their anti-fraud measures or plan to do so by the end of the year.

This finding comes from “Fraud Management in Online Transactions,” a study by PYMNTS Intelligence in collaboration with Nuvei, which examines the unique fraud challenges faced by eCommerce businesses and the steps they are taking to fight fraud.

The main reason eCommerce merchants are prioritizing anti-fraud upgrades is that 8 in 10 of them faced a cyber or data breach in the past year. According to the survey of 300 eCommerce executives, these breaches were the top security issue, affecting 82% of businesses. Additionally, 23% of executives said security breaches were their biggest challenge last year.

Other major challenges for eCommerce merchants are closely related to each other. Seventy-seven percent of merchants reported that addressing customer concerns about data privacy was a top priority, while 68% cited reduced customer satisfaction as an issue. Additionally, 47% pointed to losing customers and revenue as a significant security challenge.

These challenges are all tied to how customers perceive a merchant’s vulnerability to fraud and how it might affect them. This connection explains why 82% of the merchants we surveyed see increased customer satisfaction as a key benefit of updating their anti-fraud measures, with 21% considering it the biggest advantage.

Most eCommerce merchants are currently upgrading their security features to combat rising cyber threats. However, their main motivation isn't just to prevent financial losses; it's largely about protecting their customers and maintaining their brand's reputation.