E-commerce in APAC thriving, but online fraud risk rocketing

SINGAPORE, May 16: E-commerce in the Asia-Pacific is booming with 71 per cent of APAC consumers making online purchase -- but so is the risk of fraud, with one in five customers already falling victim, says a Media OutReach, release.
These are among the headline findings of the Digital Consumer Insights 2018, published by the world's leading information services company Experian, and co-authored with the advisory firm IDC.
The report is based on a consumer survey across ten APAC markets, namely Australia, China, Hong Kong, India, Indonesia, Japan, New Zealand, Singapore, Thailand and Vietnam. The study delves into how well businesses mitigate fraud risk through the eyes of their most important stakeholders, the customers.
It found that as brands and consumers look for ever-easier ways to buy and sell products online and via mobile devices -- with electronics, travel and groceries being the most popular -- the opportunity for online fraud is escalating.
The report revealed that almost one in five APAC consumers has already had the misfortune of experiencing fraud.
"Asia Pacific is one of the most dynamic digital and mobile economies in the world," said Ben Elliott, CEO of Experian Asia Pacific. "71% are buying online, and 63% who have adopted mobile payments consider them convenient. But as more people adopt faster and more effortless ways to shop, bank and engage with businesses, fraud exposure will increase. This is a concern with 18% of consumers in the region already experiencing fraud."
More than half (51 per cent) of consumers would switch service providers in the event of fraud proving that consumers are willing to trade convenience and a better customer experience for better fraud protection.
The report -- a companion to Experian's Fraud Management Insights 2017, which looked at fraud through the eyes of enterprises -- also found distinct differences in consumer attitudes between countries.
In mobile-led, emerging markets, people are more convenience-driven and less risk-averse, with the more security-conscious individuals tending to come from mature economies.
"We notice that in more mature economies like Hong Kong and Singapore, consumers are largely more aware of fraud risks and act in a more conservative manner," added Elliott.
"This means they may sometimes avoid transacting online should they perceive a potential fraud risk. This is in contrast to emerging economies like Vietnam, where consumers are less fraud aware and more convenience driven."