Fraud is a deterrent to eCommerce on social networks

Fraud is a deterrent to eCommerce on social networks

Businesses looking to use social media websites such as Facebook as an eCommerce portal may have to think of ways to show consumers that these sites are safe, as a new study by ThreatMetrix and The Ponemon Institute shows that 53 percent of people have no confidence in shopping on Facebook. Increased security, PCI compliance and more could help these companies ease the fears of shoppers.

“Consumers have yet to adopt social shopping habits because it’s largely unavailable, with many retailers still trying to figure out their strategy in offering their products via social outlets like Facebook,” said Alisdair Faulkner, chief products officers at ThreatMetrix said. “And with the current consumer perception that Facebook isn’t doing enough to protect against security breaches, Facebook storefronts still face hurdles in gaining widespread adoption.”

About 74 percent of shoppers are either concerned or seriously concerned about fraud when making purchases online, according to the study, with another 72 percent worrying about becoming an actual victim of fraud.

Even so, 57 percent of people make purchases online, the study shows. ECommerce businesses will need to follow PCI DSS regulations and make sure people know their websites are safe for conducting transactions, if they want to help drive sales and increase customer confidence.