June 7, 2018
Merchants have been aware for some time that fraudsters have been attacking them in growing numbers at the account level through account takeover and new account creation fraud. Consumers seem to be getting that message as well, with 83 percent of them expressing moderate to extreme concern that their identity will be used to open a fraudulent account, according to a new report. The IDology Consumer Digital Identity Study also highlighted the unfortunate human trait that awareness does not necessarily translate into action.
Of those whose knew their data had been compromised in a breach, only 40 percent had even bothered to change their passwords to online accounts, leaving them vulnerable to attack. Only 23 percent turned on fraud alerts with a financial provider and 20 percent said they had taken no steps at all to protect their identity. At the same time, they prize a frictionless experience, the report said. Nearly a third of those polled had abandoned an account signup process because it was too difficult or took too long.
“Consumers place a premium on speed and security, and are aware that their identities are less safe, but many haven’t taken the necessary actions to protect them, perhaps because they simply don’t know where to start,” said Jim Van Dyke, founder and CEO of consultancy Futurion. “This is a need and an opportunity for businesses to rise to the challenge and help customers protect their identities.”