Experian has released a new report that suggests most people would like a more personal online shopping experience. Specifically, the firm’s 2020 Global Identity and Fraud Report found that 55 percent of consumers felt like they were going unrecognized in their dealings with online merchants, which is at odds with the 95 percent of businesses that believe they are good at identifying their customers.
Unfortunately, there is some evidence to suggest that the merchants may be overconfident in their abilities. The majority of businesses (57 percent) were facing higher rates of new account and account takeover fraud, which can be at least partly attributed to their inability distinguish fraudsters from legitimate consumers.
“While businesses think they’re doing a good job, fraud continues to rise and consumers don’t feel like businesses know them. Businesses need to do a better job of using data and technology to better identify customers and prevent fraud,” said Experian Executive VP and Global Identity & Fraud Solutions GM Steve Pulley.
Experian noted that most consumers view security as their top priority during an online interaction, and that 81 percent regarded physical biometrics as the safest form of authentication. With that in mind, Experian argued that businesses should make identity verification a higher priority, although the firm did acknowledge that most businesses are already investing in advanced analytics and AI technologies, including biometrics.
The results in the report were compiled based on interviews with more than 650 businesses and 6,500 individual consumers from around the world. The study found that international consumers were generally aware of the value of (and wanted more control over) their personal information, but the vast majority (88 percent) appreciated the fact that their data was being used to deliver a better customer experience.
That trend is in keeping with Experian’s 2019 Global Identity and Fraud Report, which found that customers are willing to trade their data for convenience and security. Jumio has also reported that new account fraud has been rising for the past few years.
February 4, 2020 – by Eric Weiss