Consumers Are Increasing Their Digital Activity Despite Rising Fraud Concerns
New research from Experian finds that consumers
trust known brands who protect them online
Digital financial transactions have become commonplace in recent
years, growing a number of savvy consumers with a heightened
awareness of fraud and the role recognition and security tools play
in protecting them. Insights from Experian’s annual Global
Identity & Fraud Report found that more than half of
consumers surveyed globally have been a victim of fraud or know
someone who has – where identity theft has surpassed credit card
theft as their biggest security worry. Despite these concerns, most
consumer respondents say their online activity will increase in the
next three months.
“Criminals persistently seek the path of least resistance and to
combat that, organizations must be equally aggressive in leveraging
data as a defence, prioritizing investments in fraud detection and
prevention, and proving to customers that their security is
paramount,” said Eric Haller, EVP/GM Global Identity & Fraud at
Consumers globally value security in their online experience
above other factors. Interviews conducted with participants
revealed that for many people, balancing the need for security with
the convenience of online transactions comes down to which
companies they trust. Payment system providers, credit card
companies, tech providers, and streaming services are the
businesses most trusted by consumers to address online security
Consumers also said that regardless of company size, if a brand
consistently provides positive digital experiences, they will trust
that the organization is protecting their data. Fifty-seven percent
of consumers report that they are willing to share data if it
ensures greater security or prevents fraud, with consumers
expecting protection from companies in return.
Nearly 75 percent of consumers expect businesses to take the
necessary security steps to protect them online. This isn’t a
surprise to businesses, a majority of which expect consumers to
cite security as a top priority. Yet, regardless of business
investment, 70 percent of businesses say preventing fraud is their
top concern – the highest that figure has ever been.
The research indicates there is still a significant gap between
consumer sentiment and business intentions related to identity
recognition. Only one-third of consumers are confident businesses
will recognize them repeatedly online, even though 84 percent say
recognizing customers is very or extremely important. And there’s
no runaway leaders in terms of which recognition and security
methods consumers prefer – physical biometrics and pin codes to
device holding the top two spots.
The 6th annual Global Identity & Fraud Report can be
downloaded here: https://bit.ly/GIDFR22
Additional findings from this year’s annual identity and fraud
- 77 percent of consumers say their concern increased after
experiencing an online fraud incident, this concern was highest in
Colombia, Peru and Brazil.
- 83 percent of consumers say security is their most important
factor of the online experience. That figure is highest – 89
percent – in Colombia, Chile, Ireland and South Africa.
- 95 percent of Baby Boomers cite security as the most important
aspect of their online experience, 10 percentage points more than
their Generation Z counterparts.
- Baby Boomers feel most secure with physical biometrics, more so
than their younger counterparts (18–25-year-olds). They’re also
more confident in behavioral biometrics.
- Businesses say improving the digital customer journey is
paramount, this is highest (above 90 percent) in Indonesia, India,
Brazil, Chile, U.S.A. and Ireland.
- Only 1 in 5 consumers report being offered a pre-filled form
option as part of their account opening digital experience.
Note to editors:
To develop the study, Experian surveyed more than 6,000
consumers and nearly 1,900 businesses from 20 countries spanning
Australia, Brazil, China, Colombia, Denmark, Germany, India,
Indonesia, Ireland, Italy, Malaysia, The Netherlands, Norway, Peru,
Singapore, South Africa, Spain, the United Kingdom and the United
States. Also incorporated were interviews with consumers from
Brazil, Germany, the UK and U.S.
Experian’s identity and fraud business comprises more than 300
fraud experts around the world working to protect people’s
identities and fight fraud for businesses across multiple sectors,
including financial services, telecommunications,
retail/e-commerce, insurance, government and healthcare.
Experian is the world’s leading global information services
company. During life’s big moments — from buying a home or a car to
sending a child to college to growing a business by connecting with
new customers — we empower consumers and our clients to manage
their data with confidence. We help individuals to take financial
control and access financial services, businesses to make smarter
decisions and thrive, lenders to lend more responsibly, and
organizations to prevent identity fraud and crime.
We have 20,600 people operating across 43 countries, and every
day we’re investing in new technologies, talented people and
innovation to help all our clients maximize every opportunity. We
are listed on the London Stock Exchange (EXPN) and are a
constituent of the FTSE 100 Index.
Learn more at www.experianplc.com or visit our global insights
content hub at our global news blog for the latest news and
insights from the Group.
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian and its affiliates. Other product
and company names mentioned herein are the property of their
version on businesswire.com: https://www.businesswire.com/news/home/20220616005309/en/
Scott Anderson Experian Public Relations 1 714 830 3185
Nick Jones Experian Public Relations 44 (0) 20 7819 5393
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