Biometric authentication boosts consumer confidence in online accounts by 30 percent
The introduction of physical biometrics for online authentication increases the confidence global consumers have in the security of personal accounts from 43 percent to 74 percent, according to research from Experian. Despite this, biometrics use lags passwords, PIN codes, security questions, and document verification among authentication methods.
The Global Identity and Fraud Report shows that security is the most important part of the online experience for 74 percent of people around the world, followed by convenience. More than two-thirds of consumers (70 percent) would share more personal data with businesses online in order to improve the security and convenience of their interactions. Transparency also helps, with 80 percent saying they are likely to have more trust in organizations that are more transparent.
“Security and convenience are the bedrocks of a dynamic digital marketplace that effectively manages risk and delivers a seamless experience,” said Steve Pulley, Experian’s executive vice president and general manager of Global Identity & Fraud Solutions. “The availability of information consumers share with businesses makes this possible, but it’s the same information that puts them at a greater risk for fraud, making trust more important than ever.”
Amid an increase in account opening and account takeover attacks, 55 percent of businesses have had increased fraud-related losses in the past 12 months. The report also shows greater consumer awareness of the collection of personal information, and risks associated with it.
Physical biometrics are among the top three authentication methods in Latin America, and the largest positive impact on trust from biometrics is observed in Columbia and the U.S.
Biometrics are becoming more widely available for online authentication, driven by initiatives like FIDO2 and regulations like PSD2.
Experian’s fraud prevention platform recently added Acuant’s biometric facial and ID document verification technology.
biometrics | consumer adoption | Experian | fraud prevention | identity verification | online authentication