Consumers Fear Businesses Are Prioritizing Speed Over Security As Online Fraud And Identity Theft Grow

Consumers around the world fear that businesses are now compromising online security in their efforts to deliver seamless digital experiences. According to research released by Trulioo, the leading global identity verification company, 71% of respondents living in China, the UK and the U.S. feel that online brands are now prioritizing speed over security.

With people becoming more reliant on digital services across all areas of their lives during the pandemic, concerns around online safety have risen significantly. Seventy-six percent of consumers feel that they’re at greater risk from online fraud than a year ago, and 75% are now worried about becoming a victim of fraud.

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For online brands, the last year has been one of contrasts, with fantastic opportunities for customer acquisition and growth in many sectors, set against a backdrop of new and increased threats of fraud and identity theft” – Zac Cohen, COO, Trulioo

“For online brands, the last year has been one of contrasts, with fantastic opportunities for customer acquisition and growth in many sectors, set against a backdrop of new and increased threats of fraud and identity theft,” commented Zac Cohen, COO at Trulioo. “This research suggests that we’ve reached a tipping point in consumer attitudes to online security – people are becoming acutely aware of the risks of transacting online and they want to know and see that their favorite brands are protecting them. Of course, world-class customer experience is critical to compete in a digital world, but brands should be aware that it can’t come at the expense of the most robust security practices.”

The new whitepaper, ‘New Fraud Threats in the Digital-First World’, examines how online brands can find the right balance between online security and user experience in a digital-first world.

Significantly, the research reveals that 71% of people now cite security as the most important factor when opening a new account. Sixty-four percent of people say that security is more important to them when opening accounts with new providers than it was a year ago – a figure that rises to 80% in China. In addition, 49% of consumers report that transparency around the collection and use of their personal data is now more important.

These two factors are far ahead of other considerations in the account creation process, such as choice, flexibility and seamless experience, which have become such a huge priority for businesses over recent years.

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Interestingly, the research suggests that consumers now view the risk of online fraud and identity theft as just part of the online experience. Eighty-two percent of people claim that there is always a risk of fraud when you shop online and a staggering 72% believe that their personal information is for sale somewhere online.

Cohen concluded, “Online brands shouldn’t be afraid to make a point of demonstrating that they are taking their customers’ security seriously. Consumers know that identity verification and security checks are vital for them to be protected and they’re far more likely to trust and recommend businesses that are explicit about why and how they collect and use sensitive data. Online brands are facing unprecedented levels of scrutiny and pressure to offer a secure and convenient experience, but if they can find the right balance, they can develop deeper, more meaningful relationships with customers.”