FICO UK Report highlights consumer fears over financial fraud
Ahead of Safer Internet Day, a new consumer study by FICO has found that fraud protection is the highest priority for individuals when opening a financial account. And, while the new analysis found that 1.9 million Brits have had their identity stolen and used by a fraudster to open an account, there seems to be gear-change in acceptance of more advanced authentication methods. A few years ago biometrics were relatively unknown in the mainstream consumer market; now they’re the preferred authentication method.
Published in a new report ‘Fraud, Identity and Digital Banking’, the FICO research uncovers a mixed picture of consumer attitudes towards fraud when it comes to financial services.
Key findings
- 4.3% of respondents have had their ID stolen and used by a fraudster to open a financial account – equivalent to 1.9 million Brits
- A further 5.4% think it’s probable their stolen identity has been used to open an account
- 34% rank good fraud protection as their top consideration when choosing a new account provider; 73% had it in their top three
- ID theft to open financial accounts is the type of fraud that worried Brits the most (30%)
- 1 in 5 consumers most fear having their bank account taken over by a fraudster
- 16% are most worried about being tricked into sending money to a fraudster
- Biometrics are a favourite security choice, with 68% preferring to use fingerprints
- 87% of consumers believe biometrics deliver excellent security
“With our data showing that nearly 1 in 10 UK adults believe they have probably been the victim of identity mis-use, vigilance is obviously key”, explained Sarah Rutherford, senior director, fraud marketing at FICO. “This goes beyond just having their identity stolen; it’s about it actually being used in a fraud and all the pain that brings. It’s also important to note that our data merely indicates those who KNOW their stolen identity has been used for financial fraud. Most people don’t find out immediately about fraud in their name – if ever. And, of course, a fraudster is unlikely to only use a stolen identity once, so the value of the fraud will be considerable too.
“It’s not surprising, therefore, that consumers are looking for financial services providers they can trust who are doing the best to protect their identity and finances. And it’s good to see that the previous resistance to the use of new verification tools such as iris, face and fingerprint scans, is waning as individuals recognize the benefits.”
FICO Platform unites core capabilities that aid detection and resolution across the customer lifecycle, including pre- and post-book. API access to third-party providers allows financial institutions to add and remove data sources as they see fit, and FICO’s patented analytical models help to detect first-party and third-party application fraud. FICO Platform gives data science teams what they need to get their models in to production. FICO models reduce false positives so fewer applicants are subjected to additional fraud checks. Two-way, multi-channel communications keep customers informed and automate information gathering to help you resolve cases.
Read the full report and find out how FICO can help banks and other financial institutions implement successful fraud protection.