Cyberattacks Impact 44% of UAE Retailers in 2023, Affects Consumers Confidence
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In a report published by Adyen, a significant percentage of UAE retailers were disclosed to be impacted by cyberattacks in 2023.
Collaborating with the Centre for Economic Business and Research (Cebr), Adyen disclosed that globally, the retail sector suffered a staggering $429 billion in fraud losses in 2023.
In the UAE specifically, businesses faced average losses of around AED 11 million. A shocking 44% of UAE businesses encountered fraudulent incidents such as cyberattacks or data breaches in the 2023, representing a sharp 39% increase compared to 2022.
Fraudulent activity fueled by cyberattacks is also hitting consumers hard, with more than a third (35%) of global consumers falling victim to payments fraud in the past year, compared to 23% in 2022. In the UAE, the average financial impact per affected individual surged to AED 3,250 in 2023, marking a 270% increase from the previous survey.
Despite this alarming rise, 68% of UAE businesses claim to have effective fraud prevention measures in place, maintaining a similar level of preparedness as the previous year (69%).
The threat of fraud has impacted consumer confidence while shopping, whether in-store or online. A significant portion (22%) of consumers now feel less secure when shopping compared to a decade ago due to the heightened risk of payment fraud.
Consequently, 29% of consumers deliberately opt to shop at stores with enhanced security measures. When shopping online, 28% of consumers appreciate retailers requesting identity verification through at least two different methods before completing a purchase, despite the potential inconvenience it may cause.
Businesses are now actively exploring how they can respond to the growing threat of cyberattacks, in order to protect both themselves and their customers. More than half (68%) have actively considered changing their payments provider to one that can offer improved fraud defense mechanisms.
Photo credit: The National
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