According to new research from the Competition and Markets Authority (CMA), 7 out of 10 people in a survey of over 2,000 adults across the UK have been victims of potential online scams, which also notes that 85% of respondents thought companies were dishonest. with customers.
Taking the research a step further, 83% of respondents said they were less likely to buy again from companies they deemed to be dishonest.
To combat the rise in online scams, the CMA announced on Thursday (February 10) that it has launched The Online Rip-Off Tip-Off, which will help shoppers spot and avoid deceptive online practices.
“With almost a third of all retail purchases now taking place online, after the pandemic fueled an increase in internet shopping, the Competition and Markets Authority (CMA) has become increasingly increasingly concerned about the impact of these ‘underhanded’ sales tactics on consumers,” the authority said in its announcement.
The survey shows that the top concern for e-commerce shoppers was hidden fees (85% of respondents), followed by subscription traps (83%), fake reviews (80%) and pressure selling (50%). %).
“As online shopping grows and expands, we are increasingly concerned about companies using deceptive sales tactics, such as high-pressure sales or hidden fees, to trick people into separate from their money,” said CMA CEO Andrea Coscelli.
“None of us would accept these tactics in the real world, but we may not realize how much they influence what we buy online, so we started The Online Rip-Off Tip-Off to help to empower buyers,” he said.
CMA’s campaign is supported by Citizens Advice, where consumers can report concerns about misleading online practices.
Related: PYMNTS Intelligence: First and Third Party Fraud Issues in the Digital Ecosystem
The rate of suspected digital fraud attempts jumped 17% globally year-over-year in the second quarter of 2021, driven by a 393% increase in the gaming industry and a 156% increase in the fraud for travel and leisure companies.
In third-party fraud, so-called bad actors mask their identities to stage cyberattacks, while first-party fraud involves dishonest actors using their own identities maliciously.