Theft by computer hacking seen as the biggest fraud risk by consumers in the UK and globally
More than half of UK consumers are concerned about the ability of businesses and financial institutions to protect confidential data, with 19 percent of respondents saying they do not trust firms to protect their data and 33 percent saying they are unsure, according to a new global report from ACI Worldwide (NASDAQ: ACIW) and Aite Group. Confidence levels were similar across the globe and only three countries had more than 50 percent of respondents indicate that they trust institutions to protect their financial and payments data. In some countries with very strict data security guidelines, such as Germany and Singapore, consumers report some of the lowest levels of confidence in data security and control.
The “Global Consumer Survey: Consumer Trust and Security Perceptions” surveyed more than 6,000 consumers from 20 countries on their perceptions and opinions toward fraud in shopping, data protection, and the ways they want to engage with firms to minimise fraud.
More than a third of UK respondents (35 percent) consequently see theft by computer hackers as the biggest fraud risk, while using cards for purchases via telephone, using a phone or tablet to shop or pay bills and shopping online are all perceived as less risky. After experiencing fraud or data breach, 56 percent of UK consumers said they would stop shopping with a given merchant.
Jay Floyd, Head of Fraud Strategy and Solutions EMEA, ACI Worldwide comments:
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“With stories about data breaches regularly dominating the news headlines, these results do not come as a surprise. Most financial institutions and businesses worldwide have invested considerably in sophisticated fraud monitoring and prevention solutions; however, fraudsters also invest considerably. They continually find new ways of attacking IT systems and thereby collecting and monetising confidential data.
“The findings should serve as a wake-up call to the industry to better educate consumers and to highlight security measures that are in place. Consumers on the other hand must become more proactive in securing their data and make use of the fraud prevention measures and services offered by their banks.”
Other key findings of the report:
- Mobile Wallet Adoption: Mobile wallet and payments adoption is strongest in regions where other electronic payments options—particularly card payments infrastructure—is less mature, for example India (56%), Thailand (51%) and Mexico (38%) compared to ‘mature card markets’ in Europe like the UK (14%), France (15%) and Netherlands (20%).
- Mobile Wallet Security: Consumers show a surprisingly high level of confidence when it comes to mobile wallet security. For example, 93 percent of UK respondents say they believe mobile wallet technology is secure or somewhat secure, one of the highest rates globally.
- Fraud Education: Consumer education on fraud awareness varies significantly across and within regions. In the UK, only 39 percent of consumers say they have received anti-fraud information from their bank. Across Europe, the picture is similar with at least one-third of consumers saying they don’t recall receiving any anti-fraud information.
- Fraud Prevention: Consumers are generally willing to interact with organisations in order to mitigate fraud. The majority of UK consumers (55 percent) prefer to be contacted by a bank via mobile phone if there is unusual activity on a bank account or card.
Shirley Inscoe, Senior Analyst, Aite Group comments:
“Our research shows that consumers want to proactively manage fraud, particularly by leveraging mobile technology – whether it’s text or talk. This willingness opens opportunities for financial institutions and merchants to optimise the ways in which they reach out and communicate with consumers, ultimately improving customer experience while reducing operational costs and fraud losses.”
* Methodology and Demographics:
ACI Worldwide, a global leader in electronic payments for financial institutions, retailers, and
processors, conducted online quantitative market research in March 2016 and surveyed 6,159
consumers. The study was conducted in a total of 20 countries in the following regions:
- The Americas: Brazil, Canada, Mexico, and the United States
- EMEA: France, Germany, Italy, the Netherlands, South Africa, Sweden, the
United Arab Emirates, and the United Kingdom
- APAC region: Australia, India, Indonesia, New Zealand, and Singapore
China, Russia, and Poland were removed compared to 2014, and Spain, Thailand, and Hungary
were added for 2016.
In total, 6,159 consumers were included in the research—approximately 300 consumers, divided
equally between men and women, participated in each of the 20 countries. Of the total, 6,041
own one or more type of payment card—credit card, debit card, or prepaid card. This is the
fourth time that ACI has fielded this type of survey, and some comparative results are included
from 2012 and 2014. In each country, the data have a margin of error of approximately five points. Statistical tests of significance, where shown, were conducted at the 95 percent level of confidence.