New data published today reveals that 55% of UK consumers are concerned about spending money on social media due to fear of fraudulent sellers. Fraud is now the number one concern deterring UK consumers from buying through social media, with 42% of UK consumers not trusting their details on social media platforms. This comes during the same week that the City of London revealed that investment fraud it has increased by 49.5% in the last 12 months, and many victims are now targeted on social media.
This is according to a new study from the leader in financial technology FIS (NYSE: FIS), owners of Worldpay and is based on the opinions of 1,000 UK consumers from different locations and ages. In fact, the findings showed that while older consumers were more concerned about fraudulent sellers, Gen X consumers were less concerned than millennials, with 55% of Gen Xers expressing concern compared to 59% of millennials.
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As expected, Gen Z was the least deterred from buying on social media, with only 46% saying they were worried about being a victim of social media fraud. In fact, 78% of Gen Z and 70% of Millennials say they are likely to make a purchase directly through a social media platform in the next 12 months. In contrast, 61% of Baby Boomers responded that they are No You are likely to make purchases through social media platforms in the next year, and 18% of consumers believe that social media platforms encourage them to spend beyond their means.
Silvia Mensdorff-PouillySVP, Banking and Payments, Europe, FIS comments: “Social media (and other online platforms) are becoming increasingly popular with UK consumers, particularly the younger generation. In fact, our data shows that 78% of Gen Z and 70% of Millennials say they are likely to make a purchase directly through a social media platform in the next 12 months. However, the findings also show us that consumers are becoming more aware of the risks of fraudulent sellers, and this makes them think twice about buying from social sites. Transactions through existing and emerging digital channels will continue to proliferate and consumers need to be able to tell the genuine from the fake in these situations.”
The survey also explored attitudes towards shopping in the Metaverse. Across all generations, 43% of consumers say they are likely to enter the metaverse in the next 12 months; however, only 21% of Baby Boomers plan to use the metaverse during that time. While 62% of Gen Z consumers said they would be willing to make a metaverse purchase in the next year, older generations said they were less inclined. Those willing to make purchases in the metaverse in the next 12 months said they would be willing to buy tickets to events (43%), buy games or game tokens (42%), and banking services (31%), including investments, insurance and loans. within the metaverse.