With the increasing relevance of online retail, the number of (attempted) cases of fraud in B2B trade has also increased enormously. More than two-thirds of the companies surveyed (64%) say they have already been confronted with fraud or attempted fraud in their online shop.
The most common forms of fraud are allegedly unreceived goods (38%), false address information (37%) and orders placed via fake identity (36%). The economic consequences for the companies are immense: around 14 percent of the turnover has been lost by affected companies due to fraud in the online shop. This is shown by the results of the current B2BEST Barometer of ECC COLOGNE and Creditreform, which is dedicated to the topic of "Digital Identity" in its 15th edition. In view of the increasing number of cases and attempted fraud, targeted identity verification of (new) customers is rated as highly relevant (87%) by the wholesalers and manufacturers surveyed.
Photo: Dreamstime.
Checkout process: Checks have increased
Checks in the checkout process show an initial rethink: 37 percent (2023: 29%) of respondents will check in 2024 which customers are allowed to order and how using a complex set of rules that takes into account, among other things, shopping cart, customer behaviour and identity information. Only around a quarter (26%, 2023: 36%) only carry out selective audits.
'Despite the high priority of digital identity verification, there is still room for improvement in implementation, especially in the area of fraud prevention. This is because almost half of the companies only take measures to verify their identity after at least one case of fraud. The solvency of customers is also checked in real time by only a third,' explains Christian Kramer, Sector Manager Wholesale and Foreign Trade at Creditreform.
Upcoming e-invoicing obligation
Another central component of the checkout process is sending invoices: While only around a quarter of B2B companies (26%) use electronic invoices, the majority send invoices by e-mail (79%) or by post (48%). Invoices are also only issued electronically for a third (32%).
'Despite the expected challenges in implementation, the majority of wholesalers and manufacturers see great potential in the e-invoicing obligation, which will come into force from 2025, to automate and further digitize their own processes,' says Dr. Kai Hudetz, Managing Director of IFH COLOGNE and founder of ECC COLOGNE.
Economic situation again slightly improved
The vast majority of the manufacturers and wholesalers surveyed (79%) continue to assess the general economic situation as positive overall. The mean value of 1.99 (on a scale from 1=very good to 5=very bad) again improves slightly compared to the first two quarters of the year. The willingness of the companies surveyed to invest has fallen slightly compared to the previous quarter, but is still at a high level.
More information:
IFN KOLN
www.ifhkoeln.de