Regulators and policymakers have to take steps to ensure customer protection during e-commerce transactions. However, a new customer authentication measure in the UK proves rather frustrating. Reducing online fraud often compromises user convenience, and shoppers aren’t too happy.
Strong Customer Authentication is Necessary
The new change imposed in the UK makes all purchases of over 25 GBP subject to additional customer authentication. More specifically, this rule applies to e-commerce transactions. Although authentication is an annoying thing to deal with, it also ensures online fraud is kept to a minimum. As those fraud levels continued to rise over the years, introducing SCA was the only viable option.
The two-factor authentication checks have been in place since mid-March 2022. However, a new survey by Signifyd confirms one in three shoppers are not happy with the change. They claim that customer authentication prevents them from completing purchases. Considering three in four will not return to a retailer after a bad experience or failed transaction, SCA poses a real industry issue.
Signifyd MD Europe Ed Whitehead adds:
“It’s clear that consumers in the UK and across Europe want their accounts to be protected from fraud when shopping online.It is even more clear that they won’t put up with frustrating checkout experiences. That sends a clear message to merchants and the banks that serve them: They need to adopt solutions and technology that keep transactions safe while avoiding any unnecessary added friction in the shopping journey.”
This issue is not native to just the UK either. Similar sentiment exists in France and Italy and may spill over to other countries. Customer protection sacrifices convenience, and consumers would seemingly rather risk online fraud than verify their identity through a straightforward and quick customer authentication procedure.