The Green Sheet Online Edition
February 26, 2018 • Issue 18:02:02
Experian confirms growth in online fraud
Experian's Global Fraud and Identity Report, published Jan. 24, 2018, noted that online fraud is a growing concern for businesses worldwide. In an effort to provide linkages to customer recognition, convenience, trust and fraud risk; researchers interviewed 5,500 consumers and 500 business leaders between June and October 2017.
Respondents included senior executives from financial institutions, payment providers, and online and mobile retailers in the United States, United Kingdom, Brazil, Singapore, China, India, Australia, France, Spain, Turkey and South Africa.
The following insights and data were among the report's highlights:
- Consumers expect security and a frictionless checkout experience.
- Businesses are migrating to advanced forms of authentication to improve security and the customer experience.
- The ability to recognize and authenticate customers is a major deterrent to fraudsters, who are constantly evolving and becoming more resourceful.
- Approaches to friction at checkout vary by geographic region. Consumers in India and South Africa, for example, are generally tolerant of security protocols, including schemes that require them to validate their identities, because it makes them feel protected; consumers in Turkey, however, are less tolerant of such measures.
- 84 percent of businesses surveyed believe they could reduce fraud risk if they were certain about their customers' identities.
- 72 percent of businesses cited fraud as a growing concern.
- One in four consumers have abandoned transactions because too much data was required to set up a new account.
- 52 percent of businesses are still using passwords for fraud detection and protection.
- 35 percent of consumers would transact more online if there were fewer security hurdles.
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