UK shoppers abandon online purchases over scam fears

A recent Institute of Customer Service survey reveals that one in three UK shoppers are abandoning online purchases because of rising scam fears. The study found that 58% of consumers have been approached by scammers posing as real companies, and 31% have halted at least one online order. The findi…

By Felo News Desk · Published

In a revealing new study, the Institute of Customer Service (ICS) has found that a growing number of UK shoppers are abandoning online purchases because they fear falling victim to fraud. According to the survey, 31% of respondents have stopped at least one online order, citing concerns that a website might not be genuine. The data points to a widening trust gap in the digital marketplace and raises questions about how brands can protect customers while maintaining a frictionless shopping experience.

How the study was conducted

The research was carried out by the Institute of Customer Service, an organisation that works with businesses to improve customer experience. While the exact methodology was not detailed in the press release, the survey sampled a broad cross‑section of UK consumers and asked them about their recent online shopping habits, experiences with fraud, and attitudes toward security measures. The results are presented as percentages of the total respondents, offering a snapshot of the current state of online retail confidence.

Key findings on scam exposure and abandonment

  • 58% of UK consumers reported being contacted by a scammer pretending to be from a real company in the past 12 months.
  • 53% of those scammed received fake text messages, while 49% were approached via phone calls from imposters claiming to represent a brand they use.
  • 32% of respondents said scams have become harder to spot over the last year.
  • 30% believe companies should compensate customers who are scammed by third‑party fraudsters posing as the firm.
  • 84% of shoppers feel safer when buying from brands they already trust.
  • Two‑factor authentication and security questions were the top security features that give shoppers confidence.

Consumer attitudes toward security and convenience

One of the most interesting aspects of the survey is the tension between security and ease of use. The data shows a "complex balance":

  • 35% of consumers would be willing to sacrifice convenience for stronger security.
  • 32% would accept a reduction in security if it meant a frictionless experience.
  • Another 32% are unwilling to give up any security while still expecting companies to remain easy to deal with.

These figures suggest that while many shoppers recognise the importance of robust security, a significant portion of the market is still prioritising speed and simplicity in their online interactions.

Implications for brands and the wider economy

ICS chief executive Jo Causon warned that the sophistication of scammers is a "real problem" for both consumers and businesses. She noted that more trusted brands are becoming targets, and that cyber breaches have increased the amount of personal data circulating online. The result, she said, is a growing public consciousness around scams that could undermine trust in organisations and reduce customers’ willingness to buy or share personal information for personalised services.

From an economic perspective, the study highlights a potential threat to the growth of e‑commerce. If shoppers are reluctant to complete purchases or share data, businesses may struggle to engage and expand. Causon urged companies to balance protection with speed, recommending that security measures be simple, clearly communicated, and supported by proactive customer assistance.

What shoppers can do to protect themselves

While businesses have a responsibility to safeguard their customers, consumers also play a key role. Causon suggested several best practices:

  • Do not reuse passwords across multiple sites.
  • Use passkeys or two‑factor authentication where available.
  • Verify the authenticity of a company by calling a known phone number before providing personal details.
  • Remain cautious of unsolicited text messages or emails that ask for sensitive information.

Next steps and unresolved questions

The study raises several questions that remain unanswered. For example, the survey does not detail the specific types of scams beyond text messages and phone calls, nor does it quantify the financial impact on consumers. It also does not explore how different demographic groups—such as age, income or digital literacy—are affected. Future research could fill these gaps and help businesses tailor their security strategies more effectively.

In the meantime, the findings serve as a stark reminder that the threat of online fraud is real and growing. Both brands and consumers must adapt to a new reality where trust is fragile and security is paramount.

Key facts

  • 31% of UK shoppers have stopped an online purchase due to scam fears
  • 58% have been targeted by scammers posing as real companies
  • 84% feel safer buying from trusted brands
  • Consumers are split on whether to sacrifice convenience for security
  • Two‑factor authentication is the most trusted security measure

Why it matters

The study underscores a growing trust crisis in UK e‑commerce, showing that fear of scams is already causing shoppers to abandon purchases. This trend threatens consumer confidence and the growth of online retail, making it crucial for businesses to address security without sacrificing convenience.

Frequently asked questions

What types of scams were most common in the study?

The survey identified fake text messages as the most common scam, affecting 53% of those contacted, followed by phone calls from imposters claiming to represent a brand they use, affecting 49%.

Do consumers expect companies to compensate for fraud?

Yes, 30% of respondents believe that companies should pay compensation to customers who are scammed by third‑party fraudsters pretending to represent the firm.

What can shoppers do to protect themselves?

Shoppers should avoid reusing passwords, use passkeys or two‑factor authentication, and verify company identities by calling known numbers before sharing personal information.

Sources

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