Why engendering customer trust is essential in the battle against identity fraud
Thursday, March 14, 2019
A new report by Experian which surveyed 10,000 consumers and more than 1,000 businesses across 21 countries, including the UK, reveals that building consumer trust is key in the current market as it outweighs the fear of identity fraud amongst customers. The study shows that identity fraud risk remains a constant and growing threat in today’s digital landscape and that there has never been a more lucrative time to be a fraudster. It’s a low-risk, high reward endeavour, veiled by the anonymity of the Internet. The study found that 55 percent of businesses reported an increase in online identity fraud-related losses over the past 12 months, predominantly around account origination and account takeover attacks. In the U.S. alone, 80 per cent of businesses have seen their online identity fraud losses increase from 2017-2018.
Despite this risk the report also found that consumers are sharing more personal data online than ever before. In fact 70 per cent of respondents said they are happy to share their personal information with organisations if there is a tangible benefit – such as greater convenience or enhanced security. However, this is only the case if they had established trust in the organisation. In the past, businesses have often invested in either security or convenience with one being at the expense of the other. Consumers now expect both, and reward those that deliver with their loyalty and trust.
Clearly in the current landscape businesses have a responsibility to implement effective fraud prevention measures and consumers expect businesses to take care of their information and to be transparent about how this information is used. When it comes to transparency, 80 percent of consumers say the more transparent a business is about the use of their information, the greater the trust they have in that business. Ultimately the survey findings show that transparency, security and convenience are the common denominators of trust, and trust is imperative because that’s what drives loyalty and reduces the fear of identity fraud.