Surge in Consumers digital activities despite rising fraud concerns

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Surge in Consumers digital activities despite rising fraud concerns-01

Digital financial transactions have become commonplace in recent years, fostering savvy consumers with greater fraud awareness and awareness of The protective role played by identification and security tools. Insights from Experian’s annual Global Identity & Fraud Report finds that more than half of consumers surveyed globally have been victims of fraud or know a victim of fraud — Among them, identity theft has surpassed credit card theft as their number one security concern. Despite these concerns, the majority of consumer respondents said their online activity will increase over the next three months.

Eric Haller, Executive Vice President/General Manager of Global Identity & Fraud Prevention at Experian, said: “Criminals are always looking for the smoothest path to fraud. To do this, businesses must be equally aggressive in using data as a defense, prioritizing investments in fraud detection and Prevent technology and demonstrate to customers that their safety is a priority.”

Consumers around the world value the security of their online experience more than any other factor. Interviews with participants revealed that, for many, balancing security needs with the convenience of online transactions ultimately comes down to which companies they trust. Consumers trust payment system providers, credit card companies, technology providers and streaming services companies most to address online security concerns.

Consumers also say that regardless of company size, if a brand consistently delivers a positive digital experience, they will trust the organization to protect their data. 57% of consumers said they would be willing to share data if a business could ensure greater security or prevent fraud. In return, consumers expect companies to provide corresponding protection.

Nearly 75% of consumers expect businesses to take necessary security measures to protect their online activities. This is no surprise to businesses. Most businesses expect consumers to make safety a priority. Regardless of a business’s investment, however, 70% of businesses say fraud prevention is their top concern – the highest rate ever.

Also Read: Three Effective Methods for Securing IoT Devices Against Cyber-Attacks

The study found that there is still a large gap between consumers’ views and business intentions when it comes to identity. Only one-third of consumers trust businesses to repeatedly verify their identities online, yet 84% say identifying customers is very or extremely important. And when it comes to the identification and security methods favored by consumers, no single technology occupies their minds—physical biometrics and PINs sent to devices are in the top two spots.

Other findings from this year’s annual Global Identity and Fraud Report include:
  • 77% of consumers say they are more concerned after an online fraud incident, with this concern being highest in Colombia, Peru and Brazil.
  • 83% of consumers say security is the most important factor in their online experience. This figure is highest in Colombia, Chile, Ireland and South Africa at 89%.
  • Ninety-five percent of Baby Boomers cite safety as the most important aspect of their online experience, 10 percentage points more than Gen Zers.
  • Baby boomers trust physical biometrics the most, much higher than younger generations (18-25). They are also more confident in behavioral biometrics.
  • Businesses say improving the digital journey of their customers is critical, most prominently (over 90%) in Indonesia, India, Brazil, Chile, the US and Ireland.
  • In the digital experience of opening an account, only one in five consumers said businesses offered a pre-filled form option.

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