Research reveals Brits expose themselves to fraud by having the
same password or worse – writing it down – but over three-quarters
are happy for banks to capture biometric data to protect their
finances
LONDON, June 15, 2020 /PRNewswire/ --
HIGHLIGHTS:
- Over 1 in 5 Brits have just 2-5 passwords they re-use across
ALL financial accounts
- 1 in 20 Brits admit to using just one password for all
accounts while nearly 1 in 5 write down all their
passwords
- Under half (40 percent) are prepared to use username and
password for logging into banking apps
- Nearly three quarters (71 percent) are happy to provide a
biometric to their bank for security purposes and allow their bank
to access and analyse the way they hold their mobile phone or type
in their password to protect their account (70 percent)
New independent data for FICO, a global leader in analytics
software, reveals that despite universal consumer advice that one
password for all financial accounts is equivalent to leaving the
front door open, only 40 percent of Brits have separate passwords
for each of their financial accounts. Nearly one in five Brits
write down all their passwords, another security no-no. On a
brighter note, there is wide acceptance of advanced security
options such as biometric data to protect financial accounts.
For more information visit
https://www.fico.com/blogs/fico-digital-banking-study-security-and-authentication-digital-world
The FICO Consumer Digital Banking study found a large percentage
of Brits currently do not take the necessary steps to protect their
passwords and logins online. This is especially worrying
since the onset of COVID-19, as the majority of financial
transactions have gone digital. It seems that the youngest
generation – 18-24-year olds – are the most likely to have just one
password for all accounts (8 percent). This age group is also the
least likely to have 10 or more passwords for their accounts (10
percent).
Middle aged Brits (45-54-year olds) are the biggest culprits of
having just 2-5 passwords which they use across all financial
accounts (28 percent). Perhaps dispelling ageist perceptions, the
55+ age group are the greatest advocates of having separate
passwords for every account (41 percent), albeit that is only 1
percent above the national average.
Remembering passwords is another security weakness revealed by
the FICO research:
- Only 18 percent claim to use recommended password management
software
- 18 percent also admitted to writing their passwords down.
- 42 percent claimed to be able to remember their passwords.
However, acknowledged forgotten usernames and passwords are a
regular pain point.
- Nearly a quarter (24 percent) reported that they abandoned an
online purchase because of forgetting their username or password. A
similar percentage have been unable to check an account
balance.
- Forgotten usernames and passwords have stopped 15 percent from
opening a new account with an existing provider.
"Forgotten usernames and passwords can result in online
purchases being abandoned; they even impact new account openings
with existing providers," said Sarah
Rutherford, identity solutions expert, FICO. "It's important
that consumers are given the confidence that transactions can be
completed swiftly without any increased risk to security by using
biometrics, especially with consumer behaviours switching to
digital channels as a consequence of COVID-19. Fortunately, our
survey showed that a move towards more secure authentication
methods has positive support from consumers."
When logging into their bank via mobile app, over half (53
percent) are prepared to use a one-time passcode (OTP) by SMS when
security checks are required. However, this method has its own
weaknesses as 17 percent believe their bank account provider does
not have their current mobile phone number. And less than half say
their bank has their correct home phone (landline) number. This
means that, just as online payments are becoming the norm for most
Brits, for as many as 1 in 6, authentication for online payments
including those by debit card could fail.
The good news is that biometric methods are now being widely
accepted for security. 71 percent are happy to provide their bank
with a biometric. And for logging into a banking app, 48 percent
said they would be happy to use a fingerprint scan, 25 percent a
facial image and 23 percent a voiceprint. Only 13 percent
think that a bank should never capture a biometric.
Most people (78 percent) also accept banks' analysing their
device settings for security purposes. 70 percent also accept the
use of behavioural biometrics such as analysis of the way they hold
their phone or type in their password.
"Whilst our research was conducted just before the COVID-19
lock-down, the findings send a very clear message that UK consumers
understand the greater security benefits of biometrics over
passwords," commented Rutherford. "Since face-to-face
interactions are likely to be reduced for some time to come, it is
crucial for consumers and financial institutions to have mutual
respect for the benefits biometrics deliver – not just for security
but in terms of removing the delay and friction from financial
transactions.
"Consumers don't generally manage their passwords well, so
biometrics offers a far more simple and secure way to verify a
person's ID. Some banks are already using biometric ID as digital
account opening becomes the norm, and this is set to grow as they
strengthen their ID verification processes. And financial
institutions should be reassured that, when it comes to providing a
biometric for security purposes, people are much happier to provide
one to their bank, at 71 percent, than to a government agency at
29.5 percent."
About FICO
FICO (NYSE: FICO) powers decisions that
help people and businesses around the world prosper. Founded in
1956 and based in Silicon Valley, the company is a pioneer in the
use of predictive analytics and data science to improve operational
decisions. FICO holds more than 195 US and foreign patents on
technologies that increase profitability, customer satisfaction and
growth for businesses in financial services, telecommunications,
health care, retail and many other industries. Using FICO
solutions, businesses in more than 100 countries do everything from
protecting 2.6 billion payment cards from fraud, to helping people
get credit, to ensuring that millions of airplanes and rental cars
are in the right place at the right time.
Learn more at https://www.fico.com
FICO is a registered trademark of Fair Isaac Corporation in the
U.S. and other countries.
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