Eighty-four percent of consumers believe businesses need to use AI and automation to protect against sophisticated fraudsters 

With concerns around online fraud and identity theft rising, consumers expect businesses to utilize new technologies to protect them online. According to research from Trulioo, the leading global identity verification company, 84% of people believe that businesses will need to rely more on automated fraud protection to protect customers as fraudsters become more sophisticated. 

The research revealed positive attitudes towards a number of newer methods of identity authentication amongst consumers in China, the UK and the U.S. Almost three quarters (74%) of people said they feel secure when they are asked to log into their bank account to verify their identity for other online services. A further 72% feel secure when behavioral biometrics, such as AI-enabled analysis of their voice and typing speed, is used.

The findings are launched today in a new white paper, ‘New Fraud Threats in the Digital-First World’, which examines how online brands can find the right balance between online security and customer experience in a 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,” said 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.”

One of the most striking findings of the research is the extent to which consumers are comfortable with bank account verification, where they log in to their bank account as a way to authenticate their identity for other digital services. Eighty-two percent of people stated that they trust their bank as a central place to authenticate and manage their identity, and 70% reported feeling comfortable using their bank account to authenticate their identities for all new online accounts. 

Nearly half of all consumers (48%) believe that online brands are ultimately responsible for protecting them from online fraud and identity theft, and 32% feel that the onus lies with their bank or credit card company. Fewer than one in five people (18%) stated that it is their own sole responsibility. Interestingly, consumers in the UK are more likely to assume responsibility for protecting themselves online (26%) than people in the U.S. (19%) and China (9%). 

The research explored opinions on which identity authentication measures feel the most secure and convenient when creating a new online account. 

Two-factor authentication, where people are asked to provide two forms of verification, for example, a pin code and a One Time Password (OTP) or a biometric scan and a password), is perceived to be the most secure method. Close behind this are OTPs on their own and biometrics like facial recognition that are critical for providing secure account opening and preventing account takeover fraud (ATO).

Cohen concluded, “After a year of digital upheaval, this research highlights the need for online brands to re-think their online security strategies to address rising consumer concerns (and expectations) around online fraud and identity theft. Businesses need to demonstrate that they are doing all they can to protect customers while also delivering as seamless an onboarding experience as possible. This means offering a choice of secure and convenient identity verification methods, with clear and transparent communication on why they are requesting data or pass codes at each stage of the process.” 

Download the ‘New Fraud Threats in the Digital-First World’ whitepaper here.