Too much data and not enough fraud prevention; biometrics and micro-identities could help
More consumers see one-time passwords, two-factor authentication and answering ‘secret’ questions as providing both security and convenience than biometrics, according to the latest report from Trulioo on fraud threats and consumer security attitudes. Behavioral biometrics make 72 percent of users feel secure, however.
Fortunately, over half (52 percent) are willing to admit they lack online fraud risk knowledge and understanding. Almost three quarters prioritize security when opening new accounts, but the same number believe brands are prioritizing experience over security, according to the white paper ‘New Fraud Threats in the Digital-First World.’
“People are demanding more from online brands when it comes to their online security and they’re expecting greater variety and choice in how they verify their identity when opening new online accounts,” comments Zac Cohen, COO at Trulioo. “People expect their online experience to be both secure and convenient, and they recognize how advancements in technology have a big part to play in this. Online brands should take note – if they can get this right, then they can lay the foundations for a long and trusted relationship with customers.”
As fraudsters become more sophisticated, 84 percent believe more automated protection will be necessary.
Most consumers believe it is the responsibility of merchants to keep their personal and transactional data safe, meanwhile, and will abandon them if it is breached, according to research from NuData and Pymnts.
The ‘Securing eCommerce Study’ suggests that guest checkouts remain the most popular way for people to transact online, though digital wallets, and PayPal in particular, are gaining on them.
Micro-identities to the rescue?
Micro-identities are segments digital identities that silo, for instance, an individual’s work data away from their personal data, enabling greater user control and limiting the damage that can be caused by a single data breach. Social and financial identities, O’Connor Kolaja says, act differently, and could be utilized to stem the flood of data used in synthetic identity fraud within a few years.
A further clue to how this may work comes later in the interview, when O’Connor Kolaja says that in payments, identities will shift from email addresses and passwords to tokenized identities and biometrics.