Stay Safe Out There: With Fraud, Are Consumers Their Own Worst Enemies?Peter Reville |
Despite our best intentions, there is a sizable proportion of the tech-enabled world that just doesn’t get it. According to a new Aite Group report, Global Consumers: Losing Confidence in the Battle Against Fraud, approximately 50 percent of consumers have engaged in some type of behavior that puts them at risk of fraud. Risky behavior is defined as: leaving cell phones unlocked when not in use, responding to emails or calls asking for bank details, online banking without security software or on a public computer, thrown out papers or documents with account numbers on them, or making a note of PIN numbers kept with the card.
For example, did you know that in some countries, as many as 20 percent of consumers surveyed write their PIN number on their ATM/Debit cards or keep the PIN number with the card. Really? Yes, you read that correctly: 20 percent which is equal to one-fifth. And that’s just the people willing to admit they behave so recklessly. You know there are more out there. Why don’t you just hand you card over to the crooks?
While the PIN thing is the most egregious, the others are just as dangerous if you think about it. It seems like the most common fraud prevention mistake we do is throw out papers and documents with our account numbers on them.
EMC Corp. recently identified at least part of this behavioral dissonance. In its Privacy Paradox, it describes consumers as wanting all the benefits of technology, but in spite of an awareness of potential risks, they “take virtually no special action to protect their privacy,”
Why should we care about fraud? According to the Aite survey, about one-third of global consumers report that after receiving a replacement card after a fraud incident, they use that card less. Forget the money one loses on the fraud, what about the lost potential revenue as the card potentially loses its top-of-wallet status?
As every risk manager knows, squeeze one side of a water balloon and the water rushes to the other end. But the amount of water in the balloon stays the same. I know that some card fraud is not preventable by consumers, but a fair bit of it is. A little bit of awareness and common sense can go a long way to preventing pain.
Topics: Payments Strategy