A new Paysafe report reveals that consumers are conscious of both payment options and prices when shopping. The study, conducted with Sapio Research, surveyed 14,500 people across 14 countries, highlighting that 43 percent of consumers abandon online shopping carts when their preferred payment method isn't available. Additionally, 63 percent are concerned about losing cash as a payment option, and 44 percent want to pay for online purchases using cash at a local store.
Security remains a top priority, with 54 percent of respondents stating that it influences their online payment choices. Younger consumers (ages 18-43) are driving demand for diverse payment methods like digital wallets, e-cash, and cryptocurrencies, while also being open to AI-powered payments. In contrast, 33 percent of those over 60 are uncomfortable with AI in payments.
The report emphasizes the importance for businesses to offer diverse, secure payment options to attract and retain customers, as 47 percent of consumers feel uneasy entering financial data online.
Ecommerce has seen rapid growth, with global sales reaching $5.8 trillion in 2023 and projected to exceed $8 trillion by 2027. However, this growth has been accompanied by a rise in returns, including fraudulent ones. A report by Datos Insights revealed that many U.S. and UK merchants face return rates of 10 to 35 percent, with 21 percent of merchants in the study reporting over half of their returns as fraudulent or abusive.
Fraudulent tactics include friendly fraud, through which customers exploit consumer protection laws or misrepresent returns. To combat this, Mastercard’s First-Party Trust program and Visa’s Compelling Evidence 3.0 initiative were launched to help merchants present evidence against fraudulent chargebacks and protect against first-party misuse.
Despite these measures, many merchants lack the tools to effectively handle fraud, leaving them vulnerable and eroding trust in ecommerce transactions.
Ransomware attacks surged in the second quarter of 2024, with a 16 percent increase from the previous quarter and 1,248 recorded victims, according to Corvus Insurance's Cyber Threat Report. This rise is driven by new ransomware groups like PLAY, Medusa, and RansomHub following the takedown of groups such as LockBit and BlackCat.
Researchers noted that average ransom demands have risen by 102 percent, now exceeding $1.5 million per incident, with payments averaging over $626,000. Attackers increasingly use double-extortion tactics, threatening to release stolen data unless paid, with data theft involved in 93 percent of incidents.
Meanwhile, Binance, a blockchain platform, reported preventing over $2.4 billion in potential losses from scams and fraud from January to July 2024, protecting 1.2 million users. The company’s risk management system, combining AI with manual review, detected and flagged suspicious transactions, particularly during the vulnerable withdrawal stage.
These trends highlight the urgent need for advanced, multilayered security strategies to combat evolving cyber threats.
Federal regulators, including the Federal Reserve, FDIC, and the Office of the Comptroller of the Currency, are seeking to understand risks in bank-fintech partnerships distributing banking products to consumers and businesses.
On July 25, 2024, they issued a joint statement and a request for public and industry feedback on potential risks, with comments due by Sept. 30. The statement highlights concerns over these partnerships, including lack of bank management controls, insufficient risk management, and compliance issues but imposes no new regulatory requirements.
The call for feedback follows the collapse of Synapse Financial Technologies, a fintech company that left over 100,000 Americans locked out of accounts with $265 million in limbo due to disputes with partner banks.
Regulators noted that fintech companies play a critical role in maintaining deposit records, but they may not align with banks' core systems. The incident has sparked concerns over the stability of the banking-as-a-service model, prompting lawmakers to demand action to protect affected consumers. 
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