National Jumio Study Finds Over One in Four Mobile and Tablet Users Vic­tims of Online or Mobile Fraud; Con­sumers Expect to Increas­ingly Transact on Mobile Regard­less of Risk

PALO ALTO, Calif. – April 18, 2013

According to the results of the 2013 Con­sumer Mobile Insights study released today by Jumio, Inc. and con­ducted online by Harris Inter­ac­tive®, the vast majority of con­sumers – 83% of respon­dents1 worry about iden­tity theft, but look the other away when given the option to use mobile ser­vices that put more con­ve­nient options at their fin­ger­tips. While one in four respon­dents (26%) reported being a victim of online or mobile fraud (a higher per­centage than the recently reported national average of one in 202), a sig­nif­i­cant per­centage of the con­sumer audi­ence con­tinues to con­duct finan­cial or other impor­tant activ­i­ties on mobile, such as checking account statuses/balances (48%) or paying bills online (32%). Fur­ther, 60% of respon­dents expect to use their smart­phone or tablet even more in the future to con­duct impor­tant activities.

Jumio com­mis­sioned Harris Inter­ac­tive to field the study, which was con­ducted online between March 22 – 26, 2013, among a nation­wide cross sec­tion of 2,130 US adults who use smart­phones or tablets.

Two in every three Amer­i­cans use smart­phones or tablets, according to our research, and are increas­ingly using them to con­duct impor­tant daily activ­i­ties — from online banking to paying bills on-the-go. This adop­tion con­tinues to grow in the face of increasing mobile fraud, and related con­cerns have clearly not kept smart phone users from par­tic­i­pating,” said Daniel Mattes, founder and CEO of Jumio. “Users may be willing to accept risk now in favor of con­ve­nience, but this tol­er­ance will weaken as fraud con­tinues to grow. The industry needs to get on board to pro­tect our cus­tomers as much as the cus­tomers them­selves need to take greater precautions.”

The Jumio report is sup­ported by recent data released by Cyber­Source Corp, a divi­sion of VISA, which found that retail rev­enue lost to online fraud increased over the past two years to reach an esti­mated $3.5 bil­lion, up 3% from $3.4 bil­lion in 2011 and 30% from $2.7 bil­lion in 2010. The surge in mobile fraud is high­lighted by Cyber­source, with 28% of retailers tracking mobile com­merce fraud in 2012, up from only 8% the pre­vious year.

Detailed find­ings from the Mobile Con­sumer Insights report include:

Per­sonal Finance in Your Pocket…Easy Access, Worth the Risk

Regard­less of increasing mobile fraud affecting con­sumers and retailers, a sig­nif­i­cant per­centage of survey respon­dents reported lever­aging their mobile devices to con­duct impor­tant activities.

  • Nearly one-half (48%) of respon­dents use their devices to check their account sta­tuses or bank balance
  • 34% of respon­dents have made a retail pur­chase on mobile
  • 25% have used their smartphones/tablets to make a pur­chase within a game or app

And this behavior is only likely to increase, with 60% reporting that they expect to use their smart­phone or tablet more in the future to con­duct impor­tant activ­i­ties, such as banking, paying bills, ser­vice man­age­ment and delivery of goods like groceries.

Gen­er­a­tion whY not?

Keeping their guard up may help con­sumers stay pro­tected against falling prey to fraud­u­lent activity, as the study sug­gests a direct cor­re­la­tion between level of con­cern and risk.

  • 83% of respon­dents report that they are wor­ried about iden­tity theft and one in four (26%) said they have been a victim of online or mobile fraud; meanwhile…
    • Con­cern over online fraud and iden­tity theft is lowest among Gen­er­a­tion Y (18−34 year olds) at 78% yet this group is the most likely to have been a target, with vic­tims num­bering almost one in three (32%)
    • 91% of women age 35 – 44 said they were con­cerned about fraud, yet less than one in five (16%) has been a victim

Mr. Mobile

Among smart­phone and tablet owners, men out­number women when using their phones for activ­i­ties from paying bills to gro­cery shop­ping (and who plan to do so more in the future), with young men showing highest adop­tion across categories.

  • 64% of men expect to use their smart­phone or tablet more in the future to con­duct impor­tant activ­i­ties, such as banking, paying bills, ser­vice man­age­ment and delivery of goods like gro­ceries, vs. 55% of female respondents
  • Men (36%) are sig­nif­i­cantly more likely to indi­cate using their smartphone/tablet for mobile bill pay than women (28%). Young men are the most likely(54% of those aged 18 – 34)
  • Mobile banking is higher among men (51% overall) vs. women (46% overall) and highest overall among men ages 18 – 34 (58%)

Safety in Numbers

Regard­less of behavior, con­sumers do admit wanting greater secu­rity. Nearly three in four (74%) would like a more secure way to log into their accounts, and nearly as many would store more per­sonal infor­ma­tion online if they felt con­fi­dent that infor­ma­tion was protected.

  • Three-quarters (74%) of respon­dents would like a more secure way to log into accounts than a user­name and password
  • Almost as many people (69%) said they’d store their per­sonal pay­ment infor­ma­tion online more often if they felt con­fi­dent that infor­ma­tion was secure
  • Just under half (46%) would store per­sonal pay­ment details online more often if it pro­vided faster, more con­ve­nient pay­ment options

Con­sumers want to leverage the con­ve­nience and acces­si­bility that their mobile devices pro­vide, but the risk is that the struc­tural weak­nesses that enable fraud will even­tu­ally impede growth,” con­tinued Mattes. “For mobile to reach its full poten­tial, the industry needs to adopt more con­sis­tent and accu­rate ways to iden­tify and authen­ti­cate con­sumers. Only then will we be able to truly combat fraud.”

Survey Method­ology

This survey was con­ducted online within the United States by Harris Inter­ac­tive on behalf of Jumio from March 22-March 26, 2013 among 2,130 adults ages 18 and older (of whom 1,261 are smartphone/tablet owners). This online survey is not based on a prob­a­bility sample and there­fore no esti­mate of the­o­ret­ical sam­pling error can be cal­cu­lated. For com­plete survey method­ology, including weighting vari­ables, please con­tact Jenny Davis.

About Jumio

Uti­lizing advanced com­puter vision tech­nology, Jumio is a next gen­er­a­tion cre­den­tials man­age­ment com­pany offering pay­ments and ID scan­ning & val­i­da­tion prod­ucts for mobile and web trans­ac­tions.  Designed to reduce fraud and increase rev­enue by min­i­mizing fric­tion in cus­tomer trans­ac­tions, Jumio’s prod­ucts inte­grate easily into mobile apps or web­sites and create great cus­tomer expe­ri­ences. Jumio’s prod­ucts are widely used by leading retailers, mar­ket­places and finan­cial institutions.

Jumio’s Netswipe® enables cus­tomers to scan their cards in online and mobile checkout resulting in increased rev­enue and reduced fraud for the mer­chants. Netverify® sup­ports real-time ID ver­i­fi­ca­tion in over 60 coun­tries to help clients meet a variety of know-your cus­tomer require­ments. The com­pany was founded in 2010 by CEO Daniel Mattes and is backed by top tier investors including Andreessen Horowitz, Citi Ven­tures and Face­book Co-Founder, Eduardo Saverin. Head­quar­tered in Palo Alto, Cal­i­fornia Jumio oper­ates glob­ally with offices in the US, Europe and Asia.

Press Con­tact:

Jenny Davis
Dotted Line Com­mu­ni­ca­tions for Jumio

1 Respon­dents and con­sumers noted here and throughout the 2013 Con­sumer Mobile Insights press release refer to base respon­dents of smart­phone and tablet owners
2 Javelin Strategy 2013 Iden­tity Fraud Report; Feb­ruary 20, 2013 via NBC News