One in three UK shoppers are abandoning online purchases over fears the website isn't genuine.
A new study by the Institute of Customer Service (ICS) has revealed that 31 per cent of consumers have stopped at least one online transaction due to concerns about the legitimacy of a website, highlighting the growing impact of online scams.
The findings come as scams become more sophisticated and widespread, with 58 per cent of UK consumers reporting contact from a fraudster posing as a legitimate company in the past year. Only 34 per cent said they had not been targeted.
Jo Causon, chief executive of the Institute of Customer Service, said: "The level of sophistication on the scammers’ side is now a real problem, both for consumers and for the organisations trying to deliver a genuine customer experience.
"Scams, and the fear of scams, are now prevalent enough in the public consciousness to be having a genuine impact on business.
"Left unaddressed, this could fundamentally undermine trust in organisations and reduce customers’ willingness to buy, or share information to help with personalisation, limiting the ability of UK businesses to engage and grow."
The most common type of scam reported was fake text messages, received by 53 per cent of those targeted, followed by fraudulent phone calls from someone claiming to represent a company they use (49 per cent).
Nearly a third (32 per cent) of consumers believe scams have become more difficult to spot over the past 12 months.
Trusted brands continue to make a difference, with 84 per cent of consumers saying they feel safer using brands they trust.
Shoppers identified two-factor authentication and security questions as the measures that give them the most confidence when interacting with businesses online.
The ICS survey also revealed mixed feelings about the balance between security and convenience.
While 35 per cent of consumers said they would accept less convenience for greater security, 32 per cent said they would prefer to keep the customer experience frictionless, even if it meant lower security.
Another 32 per cent said they were not willing to compromise on security, but still expected companies to remain easy to deal with.
Ms Causon said: "Most of us are juggling busy lives and we want ease and efficiency, but the days of a completely frictionless buying experience are over.
"My advice to organisations is not to sacrifice protection for speed: make any necessary security measures as simple as possible, communicate clearly, educate customers and lean in to support them when something does go wrong."
She also said: "As consumers, we have a responsibility too, and that starts with the basics: don’t reuse passwords, make use of passkeys and two-factor authentication, and call businesses back on a number you know to be genuine."
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