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Wednesday, October 9, 2019

Fraud up, confidence down, new studies find

Two separate surveys by the Harris Poll and Experian Information Solutions Inc. show increasing fraud and decreasing consumer confidence. The Harris Poll survey, conducted on behalf of Computer Services Inc. and published Oct. 7, 2019, found 92 percent of consumers are concerned about exposing personal confidential data when they transact online. Meanwhile, Experian found most consumers place a high degree of confidence in passwords despite growing adoption of more advanced forms of security and authentication.

More than 2,000 adults participated in the Harris Poll survey between July 1 and 3, 2019. Kurt Guenther, group president for CSI Business Solutions, noted that a majority of respondents would be receptive to cybersecurity education offered through their banks. “Financial institutions have a unique opportunity to not only build stronger relationships through customer education, but also enhance their own anti-fraud efforts by providing accurate, easy-to-use advice that helps consumers protect themselves in the event of a security incident,” he stated.

The Harris Poll also revealed that 56 percent of survey respondents believe debit card transactions are more risk-prone for compromising personally identifiable information than credit card transactions. Researchers also found that 24 percent of consumers believe using the same password for online banking and other online accounts is acceptable. “Surprisingly, younger adults are more likely to believe this than their older counterparts (36% of those ages 18-34 vs. 19% of those ages 35+),” they wrote.

Earning, keeping trust

The 2019 Global Identity and Fraud Report: Consumer trust: Building meaningful relationships online, published in September 2019 by Experian, surveyed more than 1,000 businesses with average annual revenues of $3.1 billion and 10,000 consumers in 21 countries in 2018. They used aggregated data from 40,000 devices, 85,000 online accounts and approximately 480,000 transactions.

Balancing convenience with security remains a top challenge for business owners worldwide, Experian researchers found. Conveniences that improve the customer experience, such as auto-filling online forms and personalized recommendations, may also expose personal information, “as people often re-use a small set of passwords and security questions,” researchers wrote.

In their efforts to improve the customer experience, businesses may remove onerous security controls, which can be problematic for security and IT managers. Experian researchers called for “cross-functional alignment and integration among teams” to improve security while continuing to offer convenience to customers.

While consumers continue to have confidence in passwords, PIN code push notifications to smartphones, and security questions, the Experian study suggests that businesses will increasingly implement stronger authentication methods, such as “physical biometrics, multifactor/two-factor authentication, Know Your Customer procedures, internal data, and customer identification programs” in the near future.

Advanced, multilayered security methodologies will help consumers feel more trusting of their financial institutions, researchers noted. “Businesses are coming around, seeing that the consumer’s desire for both convenience and security is a tall order, unachievable without the latest technology and authentication methods,” they wrote.

For a free copy of the Experian report, visit www.experian.com/decision-analytics/global-fraud-report.html . A detailed copy of the Harris Poll report is available at www.csiweb.com . end of article

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