Onfido has released the results of a survey that quantifies both the personal and commercial impact of identity fraud. The company noted that identity fraud has jumped an astonishing 44 percent since 2019, as consumers have started doing more business online.
The problem, according to the survey, is that shoppers will often stop doing business with brands that cannot protect their personal information. A full 42 percent of the respondents indicated that they would switch banks or close their account in response to fraud, and the numbers were comparable when dealing with healthcare and telecommunications services. By the same token, more than two-thirds (68 percent) of consumers would lose trust in and avoid a brand that could not protect their personal information.
The dramatic nature of those responses speaks to the fact that identity fraud feels like a personal attack for many consumers (72 percent). Most (61 percent) would not even bother filing a complaint with the police, at least in part because a similar number believe that fraud victims are more likely to be blamed for failing to protect themselves, and many (32 percent) are embarrassed to reveal that they have experienced such an attack. Roughly a third also doubted the efficacy of the redress system, insofar as they did not expect action to be taken and did not expect to get their money back.
Thankfully, Onfido’s survey does point to a potential way forward for service providers. The vast majority (85 percent) of respondents indicated that strong security measures can help rebuild trust, with many specifically identifying multi-factor authentication and biometric authentication (including selfie-based verification) as trustworthy identity options. Such technologies could also be used for community management, to the extent that 65 percent reported that they would be more likely to trust and use a platform that could mitigate abuse and hate speech.
As it stands, roughly half of the public is worried that their identities are available for sale, and that service providers are not taking fraud prevention seriously enough. Brands will have to change that perception to improve their relationships with the general public.
“Our research tells us that consumers feel the emotional cost of fraud,” said Onfido CEO Mike Tuchen. “Businesses have a duty to protect their customers and make their digital services and products easy and simple to access online.”
Onfido, of course, is best known for its biometric onboarding technology. The company is active in many sectors, and recently delivered identity tech for the Moneytrans and Chipper Cash remittances services.
May 24, 2022 – by Eric Weiss