Middle-aged online shoppers are most likely to commit fraud

Older shoppers are more likely to commit online fraud than younger people, a new report has surprisingly discovered.

Among consumers who confessed to doing something fraudulent online last year, 41 per cent were over 45 years old, while only 17 per cent were between 18 and 24, according to fraud protection platform Ravelin.

Ravelin notes that as online shopping has risen in popularity, fraudsters have more opportunities to play the system through ‘friendly fraud’ or ‘first-party fraud.’

Moreover, only 18 per cent of survey respondents who admitted to fraud ‘firmly believe’ what they are doing is wrong, even when their activities violate a company’s terms and conditions.

Not young: Among consumers who confessed to doing something fraudulent online last year, 41 per cent were over 45 years old, according to fraud protection platform Ravelin

Many even exhibit a ‘Robin Hood’ mentality, stealing from supermarkets and major high street brands in the belief that such businesses can ‘easily absorb the losses.’

Higher living costs, putting children through university and the need to support elderly parents were suggested as reasons middle-aged consumers were breaking the law.

Heavy shoppers are also more inclined to be perpetrators, with 62 per cent of those who committed fraud more than four times saying they had bought something on the internet at least 11 times in the past year.

The findings have been published ahead of the Black Friday and Christmas shopping season when consumer fraud tends to worsen.

Martin Sweeney, chief executive of Ravelin, remarked: ‘We live in difficult times, so it is perhaps not surprising that some consumers find themselves tempted into fraudulent behaviour, but the fact so many otherwise respectable middle-aged people are involved seems quite significant.’

Of the survey respondents who admitted to consumer fraud, 7 per cent said they engaged in ‘fake returns,’ either sending back an item different from the one they bought or sometimes returning an empty box.

Meanwhile, 5 per cent said they used another individual’s card details to buy items online without their permission – also known as second-party payment fraud.

A much more common type of fraud is voucher abuse, whereby someone uses an offer more times than allowed for goods or sets up multiple online accounts to take advantage of deals.

A quarter also exploit ‘high spender’ offers, including free shipping and free returns, by acquiring more than they actually want and subsequently returning items they do not need.

Economic pressures: Consumer fraudsters across the UK, France and Germany said the most common ‘trigger’ for acting dishonestly was the cost-of-living crisis

In recent years, more retailers have started charging customers for handing back items due to the high cost of processing returns, which can severely impact their profit margins.

Clothing brands have been especially keen to impose return fees, with Zara owner H&M, outdoor specialist Mountain Warehouse, and Boohoo among those who have done so.

Ravelin noted that Topshop owner ASOS began cracking down on promotions when it found that 6 per cent of customers were costing the firm more than £100million with their overuse of returns and promotions.

The anti-fraud group acknowledged that people exploiting high spender offers are not committing a crime but said ‘these consumers are attempting to play the system to their benefit.’

Many fraudsters get tips and ideas for scams from celebrities and influencers on social media platforms like TikTok and Instagram, particularly young people. 

Ravelin’s report involved 6,278 adults across the UK, France and Germany who had bought something digitally in the previous six months. 

Forty per cent of them confessed to perpetrating online consumer fraud during the past year, while a further 36 per cent are contemplating doing so in the future.

Although inflation and poverty rates are higher in the UK, the report discovered that French shoppers were more willing to engage in consumer fraud than Britons – 47 per cent among the former group compared to 39 per cent for the latter.

In both countries, though, as well as Germany, the most common ‘trigger’ for acting dishonestly was the cost-of-living crisis.

Other major catalysts included the coronavirus pandemic, becoming redundant, having children, and starting school or university.

Most consumer fraudsters earned less than £/€100 from their actions, while only 13 per cent said they took home at least £/€500.

But a majority also think their behaviour was not fraudulent, and 45 per cent believe it is acceptable to capitalise on loopholes, gaps in returns policies and other terms and conditions.

Ravelin observed: ‘Instead of deliberate intent, consumers see a chance to bend the rules and take it – for example, when a retailer automatically refunds a return before checking it or if it delivers the wrong items by mistake.

‘For brands, reducing the opportunity to commit fraud means reducing fraud – by thwarting policy abuse, fine-tuning terms and conditions and becoming more diligent in their fraud prevention approach.’

This post first appeared on Dailymail.co.uk