Consumers Are Increasingly Wary of Online Fraud, Yet Half Fail to Take Action
LOS ANGELES, Nov. 14, 2023 (GLOBE NEWSWIRE) -- Telesign, the leading provider of customer identity and engagement solutions, today released more data from its 2023 Telesign Trust Index, which highlights the dynamic and ever-changing nature of online fraud. The survey revealed that consumers now perceive fraud as an immediate threat, yet only about half (55%) are actively implementing measures to safeguard themselves.
In the wake of COVID-19 ecommerce activity surged by $200 billion, according to McKinsey & Company, creating an onslaught of new forms of fraud. Now more than ever companies need to rethink their fraud management strategies to better align with the evolving expectations of their customers. Alignment with customer expectations is especially crucial considering IDC’s recent findings that the single greatest “trust-breaking” event for an organization and its customers is the unauthorized release of personally identifiable information through a data breach.*
During International Fraud Awareness Week, Nov 12-19, 2023, there is no better time for all organizations to join the global effort to minimize the impact of fraud by promoting anti-fraud awareness and education. Preventing fraud is not just the responsibility of management teams or the board of directors—every employee, regardless of position, has a role to play, including looking for red flags and promptly reporting suspicious activity. Consumers too can protect their digital identities by adopting proactive measures such as educating themselves about the latest cybersecurity threats and safeguarding themselves against identity thet and unauthorized account access.
“The 2023 Telesign Trust Index sheds light on the need for stronger security measures,” said Kristi Melani, Telesign CMO & Head of GTM Strategy. “It’s crucial for businesses to understand the escalating nature of digital threats and to safeguard their customers. By taking the appropriate actions, businesses can foster greater trust while maintaining the integrity of online transactions.”
Consumers overwhelmingly agree (94%) that the companies they engage with online have a responsibility to protect their digital privacy. This belief tends to strengthen as respondents get older. Meanwhile, about half of the survey respondents said their worries about online fraud have grown in the past two years. But 43% of consumers surveyed indicated that they are either extremely or somewhat concerned that digital fraud is on the rise and 20% said they are not planning to invest in annual data protection services. It was only recent victims of fraud who were statistically more likely to have software that protects their data privacy. This highlights the need for businesses to take on a more prominent role in ensuring protection.
The reality is that businesses face a delicate balancing act. Enhancing fraud controls is essential, but it must be done without compromising the end user experience. User friction, stemming from repeated customer inputs and verification challenges, poses a real threat to consumer conversion rates and overall user satisfaction.
That’s where Telesign’s suite of Continuous Trust™ solutions comes in. Telesign helps businesses prevent the transmission of 30+ million fraudulent messages each month and protects over 1 billion accounts from takeovers every year, allowing companies and customers to engage with confidence. Telesign has also introduced the Trust Certified Badge, a symbol of digital trust that demonstrates that an organization has implemented stringent fraud prevention standards across the customer journey and the digital ecosystem. With powerful machine learning and extensive data science that delivers identity with speed, accuracy, and global reach, Telesign is empowering companies to transact with their customers free of fear, making the promise of the digital economy possible.
For more information and to download the Trust Index report,?click here.
Learn more at www.telesign.com and follow us on X, formerly known as Twitter at @Telesign.
* IDC Survey Spotlight, “How Do We Break Trust”, doc #US51357423, November 2023
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