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BizReport : Ecommerce archives : July 13, 2016

Study: Social media more than connection tool for brands

Social is the place most consumers go to stay connected to friends and family as well as their favorite brands. And, social is the place many brands are going to show a more personal side of their business. There is a new trend in social, though, and it's helping brands prevent fraud.

by Kristina Knight

Most people don't think of social media as a fraud prevention tool, but a growing number of merchants are using social to determine if online and mobile purchases are being made by real people or by fraudsters. That's one takeaway from Worldpay's 2016 Fraud Report.

Researchers with Worldpay predict that mobile transaction rates will increase by at least 40% this year, to reach $617 billion, and to ensure all of those purchases are legitimate, many merchants are hitting up social media.

Worldpay's data shows that 60% of merchants are using social media to review purchases - they are checking social media to ensure that their buyers have actual social media accounts; fake accounts signal fraudulent transactions. They also found that half (52%) want to use social data better, but are unsure how to move forward.

Other interesting takeaways from the report include:

• 35% are using social for customer logins
• 56% find social logins more trustworthy
• 58% are collecting data they don't use
• 85% 'need more data' to effectively fight fraud

Tags: ecommerce, ecommerce trends, social commerce, social marketing, Worldpay

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