Most, 74 percent of consumers see security as the most important element of their online experience; then comes convenience, according to credit checking agency Experian’s third Global Identity and Fraud Report. It suggests that most, 70 percent of consumers are willing to share more personal data with the organisations they interact with online, particularly when they see a benefit such as more online security and convenience.
Steve Pulley, Experian’s executive vice president and general manager of Global Identity and Fraud Solutions said: “Security and convenience are the bedrocks of a dynamic digital marketplace that effectively manages risk and delivers a seamless experience. The availability of information consumers share with businesses make this possible, but it’s the same information that puts them at a greater risk for fraud, making trust more important than ever.”
Consumers and business leaders agree that security methods enabled by new technologies and authentication methods instill online trust. In fact, consumer confidence grew from 43 percent to 74 percent when physical biometrics was used to protect their accounts. Businesses are also beginning to embrace changing tech. Half of organisations globally reported an increase in their fraud management budget over the past 12 months; the United States and UK saw the biggest increase.
Pulley said: “Trust begins with a business’ ability to demand more from the information they already have and to use advanced technologies to identify their customers and deliver a relevant experience without increasing their risk exposure. In other words, consumers really can have both – security and convenience.”
The report found that nearly 80 percent of consumers say the more transparent a business is about the use of their information, the greater trust they have in that business. A majority, 56 percent of businesses plan to invest more in transparency-inspired programmes such as consumer education, communicating terms more concisely and helping consumers feel in control of their personal data.
The credit checking firm interviewed more than 10,000 consumers and more than 1,000 businesses across 21 countries. Findings include:
· 55 percent of businesses reported an increase in fraud-related losses over the past 12 months, particularly account opening and account takeover attacks.
· 60 percent of consumers globally are aware of the risks involved with providing their personal information to banks and retailers online.
· 90 percent of consumers are aware that businesses are collecting, storing and using their personal information.
· Banks and insurance companies are the organisations trusted most by consumers across most regions. Online retail sites and social media sites trail considerably on trust.
· Nearly nine out of ten consumers report conducting personal banking as their top online activity.
· Passwords, pin codes and security questions remain the authentication methods most used by businesses; then come document verification, physical biometrics and CAPTCHA.
