Spain has become a market leader in online sales, with a total of 30 million shoppers in 2021, representing approximately 63% of the population. This figure is expected to grow by 25% by 2025, reaching 37 million online shoppers. However, this flourishing eCommerce is not without its challenges, and the risk of fraud is one of the factors to be taken into account.
Spanish consumers are known to be price conscious, valuing offers and promotions when shopping online. The most popular categories in Spanish ecommerce include fashion, luxury goods, electronics, travel and food. Although Spain has maintained a low overall fraud rate of around 1%, risky consumer behaviors, such as shopping on unsecured computers, pose additional challenges. With the continued growth of Spanish eCommerce, fraud is expected to increase.
4 factors increasing the risk of fraud in Spain
The combination of international transactions, high-value product categories, risky consumer behavior and active social media presence creates an environment where fraud risk may be higher. According to ClearSale, these are some of the factors that can increase the risk of becoming a victim of fraud when shopping online:
- Cross-border shopping 2.
Spain has experienced robust cross-border e-commerce, with consumers shopping online primarily in China, the UK and Germany. However, international transactions carry higher fraud risks due to the complexity of regulations, the diversity of payment systems and the difficulty in verifying the authenticity of shoppers in cross-border environments.
- High-value purchases
The most popular product categories in Spain, such as fashion and luxury goods, consumer electronics, travel and airline tickets, present additional risk. High-value products, being attractive to fraudsters, represent a potential target for fraudulent transactions. The need to safeguard these categories becomes essential in a market where demand is focused on high-cost items.
- Using unsecured devices
Spanish consumer behavior, characterized by risky practices such as leaving smartphones unlocked and making purchases on unsecured computers, amplifies vulnerability to scams and fraud attacks. This attitude presents an additional challenge for businesses and highlights the importance of educating consumers about safe online practices.
- False advertising
The high level of social media activity in Spain, with over 50% of the population online and 87% penetration of social platforms, poses an added risk. Social media advertising, with high penetration, becomes a potentially exploitable medium for fraudsters to carry out fraudulent activities, underscoring the need for constant vigilance and preventative measures.
How to strengthen security against fraud during the holiday season
According to ClearSale, it is best to combine artificial intelligence (AI)-based algorithms with human intervention to automatically approve most online orders and review suspicious ones. In addition, review by fraud analysts, who are responsible for recognizing difficult-to-detect fraud patterns, is also recommended. Likewise, it is essential to focus not only on fraud prevention, but also on chargeback management.
ClearSale has 20 years of experience in fraud prevention services in Latin America, which gives it a deep knowledge of the modus operandi of fraudsters, both in the LATAM market and in Spain, allowing it to block their attempts. Their service is installed quickly and easily through an API, providing effective protection during the holiday season. For more information, you can contact them directly through their official website.
