When it comes to shopping and banking online, consumers have high expectations—and sometimes contradictory ones. They demand that businesses do everything in their power to keep their data safe. But they also get frustrated when there are too many security impediments during an online transaction, according to Experian's new Global Fraud and Identity report.
People Want Online Security Measures
In Experian's survey of 5,500 people across 11 countries, two-thirds of all respondents said they liked the security protocols they see during an online transaction because it made them feel protected.
In fact, four out five consumers said they trust that businesses make protecting their personal data a top priority. And 27% of respondents said they would abandon a transaction if security didn't seem up to snuff.
66% of consumers said, "I like all the security protocols when I interact online because it makes me feel protected."
But Don't Slow Things Down
But consumers seem to want their cake while eating it too. They will tolerate a certain amount of friction during a transaction to ensure their security, but not everyone is willing to deal with the hassle.
In Experian's survey, one-third of all respondents said they would conduct more transactions online if there weren't so many security hurdles to overcome. Among all consumers, Millennials were the most impatient: 42% said they'd increase their online activity if security hurdles were loosened.
"The research shows that as consumers, we expect businesses to protect us when we engage with them online, and we want some visible signs of that security. But above all, we want convenience," says Kathleen Peters, senior vice president for fraud and security at Experian.
For their part, companies are trying to achieve the perfect balance between security and ease of use. Out of 500 businesses surveyed, three out of four said their goal was to develop advanced authentication and security measures that would have no impact on the customer's digital experience. It's a delicate balance, especially when 65% of businesses surveyed said they are experiencing the same amount or more loss due to fraud than previous years.
"A majority of businesses stated they want to improve their fraud and authentication capabilities and employ advanced technologies," says Peters. "That's good news for consumers."
One solution may be to develop biometric security measures in order to authenticate a customer's information while shopping or banking online. But businesses say customers often prefer familiar methods like passwords—so they have to figure out a way to convince consumers to come on board.
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