WEB
of deceit?
An extract from Perspective: The fraud and identity issue
Essential insights into the issues facing your industry today
Web of deceit?
Earlier this year we conducted
a YouGov survey to find out
more about consumers’
attitudes towards the risk of
fraud, and what they deem
appropriate when conducting
financial transactions online.
However, there is no need for financial
One way to do this is to set parameters
service providers to rush to open lots of
within an authentication and identity
new branches. Interestingly, when asked
process which adapts the level of security
how they would prefer a financial services
and checks to the relevant transaction,
provider to get in contact with them, the
meaning that a customer conducting a
same percentage of respondents – 29% –
small transfer of funds between accounts
said they would prefer to be contacted
doesn’t have to go through the same
via email as via post (i.e. letter).
stringent process as a new client applying
for a mortgage.
This is, nonetheless, a minority. When
Cyber and identity fraud is on the up,
asked which contact methods would cause
Use of new technology
with data-driven identity fraud accounting
most concern about potential fraud, email
Respondents did recognise that security
for over 45% of all confirmed frauds
communication topped the list, with 58%
measures are necessary: the survey
identified in the first three quarters of
stating they would worry when contacted
revealed that almost as many people
2014. Add to that an increasing number
via email compared to only 16% who would
would be happy to use fingerprint
of services being offered online, we were
worry about a letter being an attempted
recognition (31%) as passwords (32%).
interested to take a closer look at the
scam. Does this indicate that the perceived
perceived risk by the consumer. What is
risk of email outweighs the convenience?
This is reassuring, as we can see that
the use of fingerprint recognition and
the attitude towards the risk of fraud, and
what security measures consumers deem
Increasing education
other biometrics, such as facial and voice
appropriate when conducting financial
With this fear of fraud and potential scams in
recognition, is becoming more recognised
transactions online?
mind, it’s interesting to see that 35% of people
and more widely used within the industry.
feel that their bank doesn’t communicate
Biometric identification will soon become
In February 2015, Equifax commissioned
with them very much (or at all) about the
commonplace across multiple payment
YouGov to conduct a survey around
security measures they have in place.
platforms, as well as phones and NFC
payments (contactless cards). We know
these themes. A general fear of fraud and
scamming was a clear thread throughout,
Could a lot of the fear around the perceived
that many banks are looking to enrol
especially when it came to using online
risk of using financial services online be
devices at interaction points and use
services. Looking at the results, what
eradicated by more or better information?
fingerprints to authenticate a person’s
can organisations do to reduce this fear
By educating and informing their customers
identity, helping to secure the consumer
and help reassure customers that their
about the security measures they use, and
without the need to remember multiple
accounts and personal details are safe?
how these help protect them from fraud,
passwords and PINs.
organisations could possibly persuade
Fear of scamming
consumers to move away from costly
Voice biometrics will do the same for call
Many people’s fear of scamming
face-to-face interaction.
centres, lowering security challenges
appears to revolve around the means of
but raising the standards of security.
communication with financial services
It’s all about the balance
The key is to make security checks
providers. The results show that 32% of
The survey shows that people are generally
flexible according to the risk or cost of a
UK adults prefer face-to-face contact,
happy to answer more security questions
transaction, while maintaining a level of
while 19% would prefer to speak over
for higher value transactions but not so keen
efficiency to avoid frustrating legitimate
the phone and just 15% would opt for
when it comes to day-to-day transactions.
law-abiding customers by posing
contact via the web. While this might
Not a surprising result in itself, but it
unnecessary security check questions.
not be what the industry wants to
highlights the importance for financial service
hear, as face-to-face interaction is a lot
organisations to continue to find a balance
more expensive than phone or web,
between the risk of fraud (to their business and
this illustrates consumers’ fears about
customers) and the frustration experienced
managing their finances online.
by a customer during the transaction.
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Web of deceit?
The need for device recognition
Equifax has launched a new identity
Interestingly, 54% of respondents state
and fraud solution using the latest
that they use more than one device to
evolution in multi-layered progressive
access their personal accounts. With
authentication. Equifax Progressive
several devices used by over half of the
Authentication performs dynamic
respondents, linking several devices to
risk-based authentication in a single
multiple accounts, the ability to recognise
process, allowing you to validate
which devices are being used for fraudulent
genuine customers and screen out
activities is key. The usage of device
fraudsters. For more information on
recognition technology allows organisations
our work in identity verification and
to look beyond direct evidence of fraud
fraud prevention, please contact
by identifying whether a device has been
John Marsden on 07789 996557 or
associated with fraud on other websites.
email [email protected].
More importantly, it helps reduce the
number of good customers being rejected.
All figures, unless otherwise stated, are from YouGov Plc.
54%
Idea in brief
THE SITUATION
What are consumers’ attitudes towards
the risk of fraud, and what do they
deem appropriate when conducting
financial transactions online. Earlier
this year we conducted a YouGov
survey to find out.
THE CHALLENGE
Consumers want to communicate with
financial institutions in the way that suits
them best and are open to different
layers of identity authentication for
different levels of purchase.
THE TAKE AWAY
Fraud – and scamming – is still
something consumers are concerned
about and they’re looking to
organisations to better communicate
with them to ensure they know
how to prevent identity theft but
also what steps they’re taking to
protect them.
of respondents state that
they use more than one
device to access their
personal accounts
RELATED LINKS
PRODUCTS & SOLUTIONS
BROCHURES
ARTICLES
Equifax Progressive Authentication
Equifax Progressive Authentication brochure
Are passwords becoming a thing of the past?
Equifax Device Verifier
Equifax Device Verifier brochure
Self defence: Protecting against identity fraud
EQUIFAX
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