Up to one in five consumers have already stopped purchases, according to a survey; password and PIN protection is not working, it is claimed.
Worries over identity theft have triggered a startling decline in online and telephone sales, according to a survey commissioned by Intervoice, voice and data product firm.
The survey found that one in five of the sample of 1,000 adults aged between 16 and 64 has already stopped making telephone purchases because of the threat of identity theft. A similar proportion (17 per cent) has moved away from online banking and 13 per cent of the sample has stopped using online retailing.
"The extent to which the UK public is holding back from purchases either online or by telephone is surprisingly high", said David Noone, a director at Intervoice. "These are people who say they have actually stopped using or buying through these channels – not just cut back a little."
The most common methods of providing security for consumers – passwords and PIN numbers – do not provide protection, it is claimed. The survey found that nearly six in ten (57 per cent) of respondents have given out a password, bank account number or other vital piece of personal information to a friend or family member. Some 16 per cent of the sample agreed that giving personal details to friends and family is a matter for concern and seven per cent said they would be prepared to stop giving personal details to friends and family as their preferred method of preventing identity theft.
What they say
"With high-street sales currently under severe pressure in the UK, retail organisations cannot afford to lose any further revenue, either by ‘phone or internet, due to fears over ID theft", said Noone, "Intervoice believes that many of these fears can be allayed relatively easily through technology that exists today. Voice verification in call centres, for example, is simple to install and is far more secure than passwords."
Voice verification technology means that callers no longer need to remember a PIN or password to be authenticated; instead, they are asked for profile information. By offering a speech interface, voice verification solutions can increase self-service automation for customers and lower handling costs for business, it is claimed. Callers no longer have to wait on hold to be authenticated by a call centre agent and, once authenticated, callers can proceed immediately to desired automated or agent-based transactions, according to the firm.
The boycott of telephone and online services is not evenly split across the age groups. Telephone purchases are most likely to have been abandoned by the youngest age band – where 25 per cent of 16 to 24 years old say they have stopped making use of this service – whereas online banking has been dropped by 23 per cent in the oldest age group surveyed – 55 to 64 years old. Likewise there is a pronounced difference of attitude to handing over personal details across the age range, with 72 per cent of people aged 16 to 24 admitting to having done so, against 48 per cent in the 55 to 64 range. Men say they are somewhat less likely to divulge personal information, with 54 per cent having done so, against 60 per cent of women. The least secure piece of information is the bank account number, which 38 per cent of the sample has provided to a friend of family member.
