FICO Survey: Overconfidence Could Put UK Consumers at Risk from Scams
FICO’s latest survey reveals consumers are more worried about identity theft than scams; one in four feels there aren’t enough security checks
- Banks’ education on scams not cutting through – only 6 percent of consumers are worried they could be tricked into sending a payment
- 25 percent of consumers are more likely to use real-time payments now than a year ago
- 56 percent plan to do all their banking through apps or websites in future
- 25 percent say there are not enough security checks on online transactions, and 34 percent say the same for in-store purchases
As more payments are made online, new research from global analytics software firm FICO suggests that consumers are overconfident about their ability to spot a scam. When asked which type of fraud worries them most, just 6 percent said being tricked into making a payment to a fraudster. By comparison, around 25 percent of respondents said they were most worried about a fraudster using their details to open an account, and the same amount were most worried about a fraudster taking over an existing account.
Digital Consumer Banking and Fraud Survey– Global Results
Digital Consumer Banking and Fraud Survey– UKResults Ebook
“Consumers in the
“Financial service providers face the tough task of balancing security with customer convenience, meaning they are constantly working to improve fraud controls while minimising user friction,” said
Confidence in Fraud Protection
The survey of 1,000
When it comes to making payments online using a credit or debit card, one in four people surveyed think there are not enough security checks when they make a payment online. Younger people were more concerned, and people aged 25 to 34 were the most likely to say more checks are needed (32 percent).
“More checks on online purchases are expected in March, which is the new deadline for Strong Customer Authentication checks set by the UK’s
Security satisfaction levels dropped when respondents were asked about card payments in- store, with one in three people saying there are not enough security checks. The youngest respondents (aged 18 to 24) were the most concerned, with 43 percent saying there aren’t enough checks, compared with just 32 percent for people aged 55 or older.
Real-Time Payments Growth
When asked about payments that are initiated and settled almost instantaneously (real-time payments such as
35 to 44-year-olds are the most likely (38 percent) to use real-time payments, closely followed by 25 to 34-year-olds (35 percent), and 18 to 24-year-olds (33 percent).
The biggest irritations consumers say they face with banking security is when they are asked to authenticate their identity in different ways, and when cards are blocked for legitimate purchases (19 percent).
“When we take the whole survey into consideration, there is a pressing need for banks to find the right balance with security checks and consumer education” concluded Cox. “It is clear that despite the rising frequency and intricacy of fraud attacks, consumers will feel overwhelmed and annoyed if they are expected to engage with excessive security measures.”
FICO surveyed 1,000
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 120 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
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