UAE Retailers Face Surge in Cyberattacks, a new report finds
A new study by Adyen reveals a worrying trend for UAE retailers: cyberattacks are on the rise, with nearly half (44 percent) experiencing fraudulent incidents in 2023. This represents a significant increase of 39 percent compared to the previous year. The financial impact is substantial, with businesses losing an average of AED 11 million each due to cyberattacks.
The study also found that cybercrime is impacting consumers directly. Over a third (35 percent) of UAE shoppers have fallen victim to payment fraud in the past year, with the average loss per person reaching a staggering AED 3,250 – a 270 percent increase from 2022.
This rise in fraud has shaken consumer confidence, with a quarter (22 percent) feeling less secure shopping today compared to a decade ago. To protect themselves, nearly a third (29 percent) of UAE shoppers now prioritize stores with robust security measures. Additionally, many (28 percent) appreciate retailers that employ multi-factor authentication during online purchases, despite the perceived inconvenience.
"Fraud is a pervasive challenge for retailers, and today's findings demonstrate how it can significantly impact profits," said Roelant Prins, CCO at Adyen.
The alarming rise in cybercrime has prompted UAE businesses to take action. More than half (68 percent) are considering switching to payment providers offering stronger fraud prevention tools. Additionally, many (67 percent) are exploring compliance with Payment Services Directive 3 (PSD3), a European Union regulation that mandates stricter consumer protection and data security measures in the financial sector.
"There's no single solution to fraud defence," added Prins. "A successful strategy requires tailoring based on the business model and sales platforms. Machine learning tools can be invaluable in recognizing legitimate customers and identifying fraudulent activity across all sales channels."
Adyen emphasizes the importance of advanced technology like machine learning to analyse global fraud patterns and protect businesses in real-time. By combining this technology with customizable risk rules, Adyen aims to safeguard retailers and their customers from evolving cyber threats.
