7% of reviewed listings for popular items across six UK marketplaces are found to be scams.
This Christmas, British shoppers will be turning to online shopping more than ever before as Internet retailers offer quick and convenient services. Consumers increasingly rely upon these services as the UK faces its second lockdown of the year, with many shoppers preferring not to visit physical stores. The opportunity is for online marketplaces to gain new customers, especially as many consumers turn to shopping for goods online for the first time. In fact, according to research by O2 Business and Retail Economics, 44% of consumers believe their shift to online shopping during the last COVID peak will stay the same going forward.
The good news does not stop there. In a saturated industry where monoliths such as Amazon dominate, consumers have become much more aware of where they shop and are much more willing to try a new service – over a third (39%) of respondents to a survey undertaken by Bazaarvoice said that they had bought from a new brand during the first quarantine. For small to medium sized marketplaces, this shift in shopping habits has opened up an opportunity to appeal to these newly adventurous shoppers, willing to discover a new platform.
Yet, while there is a huge opportunity for marketplaces, there is also considerable threat. The Association of Certified Fraud Examiners found that, in August this year, 77% of anti-fraud experts said that the pandemic has created an increase in fraud, while the New York Times reports that more than 200,000 coronavirus-related scam complaints have already been filed in the US this year.
To uncover the scale of this problem in the UK and help online marketplaces to understand how to keep consumers safe in the run up to Christmas, our certified content moderators started tracking six popular UK marketplaces over the peak shopping period. By reviewing listings of the items most associated with fraudulent selling, they are identifying how many show tell-tale signs of risk despite having made it through the marketplaces’ safety measures.
Having so far reviewed over 1000 listings during the first two weeks of November, we have found that:
- 7% of reviewed listings are likely to be scams
- Puppies are particularly risky, with 23% being found to be scams
- 14% of fashion listings are for counterfeit items
- Smaller marketplaces are particularly rife with scam products
The data demonstrates that no matter how large the marketplace, all marketplaces need to take precautions to prevent fraud on their platforms in the lead up to Christmas and onwards – as these scams and counterfeit posts are certainly not one-offs. Marketplaces need to rid their platforms of fraud. Larger marketplaces may see a smaller percentage of fraudulent posts but considering that they have a much larger user base, even small percentages can lead to thousands of users becoming victims. If marketplaces – of all sizes – do not act now, then they could risk long-term reputational damage and the potential for fraud on their platform to spiral out of control.
Recent research undertaken by Next Consulting on our behalf also demonstrates that:
- Up to 73% of users would never return to a platform after seeing fraudulent content
- 76% of users would not recommend a marketplace after having seen fraudulent content
- 80% would not buy from a brand that they had seen fraudulent posts for previously
Tackling fraudulent activity on marketplace platforms is not an easy challenge. The scam posts and counterfeit goods we found listed above were post-reviewed, meaning that these were the posts that had either slipped through a content moderation process or there was no process and analysis in place to start. Marketplaces need to review their content moderation strategy and explore a holistic approach – one that uses both AI and filter automation layered with manual moderation in order to provide high quality review and prevention. AI and automation are effective as a first line of defense for preventing harmful content. However, alone they are not the panacea. AI is fantastic for routine health checks – such as checking suspicious content that follows a continuous pattern. However, some scam posts venture out of the ‘routine’ and break the patterns that are typically picked up by AI. That is when human moderation will need to step in to ensure that rigorous analysis of the context is applied.
Working with a trusted partner who can provide guidance, best practice approaches and support for content moderation will be crucial for many marketplaces in the lead up to Christmas and beyond.
Do you need help with your content moderation setup? Get in touch.