I Get Knocked Down but I Get Up Again: Fraud Victims Still Conduct Financial Activities OnlineChristina Sommer |
It seems those consumers who use the Internet favor convenience over fear. In a recent study commissioned by Jumio, 83 percent of respondents are worried about identity theft, while still continuing to conduct their financial business online. In fact of the 26 percent of respondents who have been victimized by online or mobile fraud, half continue to pay bills online and check account balances on their mobile phones. These consumers won’t be deterred; they explicitly stated that the benefits—read convenience – outweigh the risk.
Gen Y respondents are slightly less concerned than the general population about online fraud; they also tend to be the most resilient, though they are victimized most often. And as shown in the chart below, women seem to be most concerned, though victimized less.
Effect of Demographics on Security Concerns
Jumio, March 2013
These findings support a long held hypothesis the MasterCard Global Insights team has had—security concern levels and risk are highly correlated. Gen Y consumers have less to lose, therefore their concerns are not as pronounced; whereas women, particularly aged 35 to 44, with perhaps more to lose financially or in terms of reputation, are more cautious.
I find this study to be particularly interesting for those of us in the mobile payments business. I view it as good news. Consumer adoption, as I have written in other posts, is the key to getting the ball rolling with regard to mobile payments. Consumers have long pointed to security concerns as a barrier to adoption.
Jumio drilled into this issue a bit further. Their latest research uncovered that three quarters of respondents “would like a more secure way to login to their accounts other than username and password”. What’s more is a whopping 69 percent would store their personal payments information online in a digital wallet or other mechanism if they felt confident their information was secure. This means that if we get this security messaging right, the payoff could be significant. The truth is that consumers what both—security AND convenience.
It is time to face the fact that security, while not sexy, is what is going to help sell mobile payments. The payments industry should use marketing efforts to educate consumers on the security features of its mobile payments products but also highlight other benefits such as convenience—the interplay between the two might be just the thing to push us over the edge.
Topics: Payments Strategy