July 12, 2018
Almost daily, U.S. consumers are met with disheartening news that their personal information was put at risk in a data breach. When asked about new payment technologies, most are concerned about them having sufficient security measures in place to protect them. But, when the question is turned around, many consumers say they feel frustrated by the inconvenience those measures cause, according to a new report.
FICO, the data aggregator and credit-rating pioneer, found many of the measures put into place to protect consumers’ personal and payment data frustrate the very people they are designed to protect. Nearly half of those polled (47 percent) expressed frustration over answering Knowledge-Based Authentication questions during customer service calls, 71 percent don’t like difficult to read Captcha codes and nearly 8 of 10 U.S. consumers reported that they struggle to remember their passwords. Overall, 71 percent of those polled by FICO said there simply are too many security measures in place.
“There’s a real discrepancy here—consumers are glad their bank is protecting them, but they’re frustrated that the protection is making it harder for them to open accounts and make purchases,” says TJ Horan, who oversees fraud solutions at FICO. “When it comes to digital transformation, a smooth customer experience is going to be vital. The winners will be the firms that can balance this against the need to stop fraud.”