Consumers Taking Credit Card Anti-Fraud Measures into Their Own Hands; Don’t Feel Merchants Are Heeding Call
Jumio Study Also Illustrates Consumer Practices Around False Identification, Desire of One-Third of Americans to Carry Digital Version of ID
Palo Alto, Calif. – October 24, 2013 – According to the new Jumio Consumer Insights Study: Fraud and Identity released today by Jumio, Inc. and conducted online by Harris Interactive, Americans may be ASKING merchants to tighten-up fraud protection practices, but they don’t feel merchants are taking the necessary steps to protect both their customers and themselves. The study finds that over two in five Americans (44%) have chosen not to sign the back of their credit or debit cards, instead writing “see ID” or leaving it blank. This activity signals a consumer desire to have merchants verify their IDs, acting as a homegrown security measure created by consumers, rather than merchants or providers. However, the tactic is not achieving its intended outcome, as 87% of respondents report that a majority of the time that they make a purchase with their credit or debit card, they are not asked to present proof of their ID.
This makeshift authentication methodology reflects growing consumer fears over credit card fraud, with over one-quarter of Americans (26%) reporting a fraudulent charge has been made to their bank account or credit card by someone else. This cause for concern is substantiated by a recent FICO report, finding that credit card fraud incidents in the U.S. grew 17 percent between Jan. 2011 and Sept 2012.
The study was conducted online by Harris Interactive in the U.S and Great Britain in September 2013 among 2,022 U.S. adults and 2,076 Great Britain adults, ages 18 and older. It provides insight into fraud and identity verification among Americans, as well as results from the related survey conducted in the UK (see companion release, UK Consumers Voice Concerns About ID and Payment Fraud Online) which finds that, while more than one in four Americans (26%) has been a victim of fraudulent charges, less than one in five (19%) Brits say the same.
“With millions of people facing serious issues of identity theft, consumers are now taking extra steps to create their own protection mechanisms so that other people cannot misuse their credit and bank cards,” said Marc Barach, chief marketing and strategy officer, Jumio. “Regardless of the explicit consumer demand, too many merchants are not taking the necessary actions to confirm that a person conducting a transaction is actually who they say they are.”
Findings from the Jumio Consumer Insights Study: Fraud and Identity include:
Take My ID…Please
While over two in five American card users have taken an extra step to protect themselves against fraudulent activity by writing “see ID” or leaving the signature area blank on their credit or debit card, nearly nine in 10 say it rarely happens.
- 44% of respondents write “see ID” in the signature area or leave the signature area blank on the back of their credit or debit card.
- Despite this, 87% of Americans report that a majority of the time when they make a purchase with their credit or debit card, they are not asked to present proof of their ID.
What’s Yours is Mine
Possibly due in part to the lax attitudes of retailers, over one-quarter of adults have had fraudulent charges made to their bank or credit card account by someone else, while nearly one in every three (29%) respondents report they’ve completed a purchase under someone else’s name.
- 26% had fraudulent charges made to their bank or credit card account by another person.
- Those ages 35-44 (33%) are more likely to say this than those ages 18-34 (18%) and those 45-54 (24%); men in this age group are at the highest risk (37%).
- Americans are more likely to be at risk for fraud, with less than one in five Britons (19%) saying they’ve been a victim of fraudulent charges in the related study.
- 29% of Americans confessed they’ve made a purchase, either online or in person, with a friend or family member’s credit or debit card (with or without permission).
- Women (33%) are more likely to have made a purchase with a friend or family member’s credit or debit card than men (24%).
- Those ages 18-34 (51%) are far more likely than all other age groups to have done this: ages 35-44 (30%), 45-54 (21%) and those ages 55+ (16%).
Spotted: Counterfeit Credentials
In addition to those that confessed they have made a purchase with someone else’s credit card, 8% of Americans also admitted to falsifying their own identify at one time or another.
Among people that admitted to ever owning or using a fake ID:
- 28% said they borrowed the fake ID (e.g., from a family member/friend), while one-quarter (24%) made their own. Over one-in-ten had it made by someone else (12% for free; 11% purchased).
- The majority of those who ever owned or used a fake ID used it on alcohol related events or purchases: 49% used it to get into a bar, pub or club; 36% used it to be served alcohol at those establishments; 22% used their fake or borrowed ID to purchase alcohol from a store.
- Additional uses of a fake ID include buying tobacco products (7%); purchasing or playing a restricted video or computer game (6%); and gambling (either online or in person, 6%).
The Digital Me
Though they may not be asked to show it for many purchases, one in three Americans say they’d prefer to flash a digital version of their ID on their smartphone given the option.
- Nearly a third (32%) of U.S. adults would prefer to carry and display a digital image of their driver license/ID on a smartphone as opposed to the traditional way (e.g., in a wallet, purse, pocket).
- One in five (20%) applicable Americans often use another form of ID instead of their driver license.
- Men are more likely than women to often use another form of ID (23% vs. 17%).
- Younger people were also more likely to say they use another form of ID (29% of 18-34 year olds), with men in this age range returning the highest responses at 34%.
“Obviously there is a distinct need to resolve identity authentication issues both on and offline, and consumers, merchants and technology companies alike need to take the necessary steps to redirect the fraud tide,” continued Barach.
For more information on the study’s findings, or to learn more about Jumio, the online verification and mobile payments platform company, go to: www.jumio.com/blog
U.S. Survey Methodology
This survey was conducted online within the United States between from September 4th – 6th, 2013 among 2,022 adults ages 18 and older by Harris Interactive on behalf of Jumio via its Quick Query omnibus product. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online. For complete survey methodology, including weighting variables, please contact Jenny Davis at firstname.lastname@example.org or 925-935-2558.
Great Britain Survey Methodology
This survey was conducted online within Great Britain between from September 2nd – 9th, 2013 among 2,076 adults ages 18 and older by Harris Interactive on behalf of Jumio via its Quick Query Global omnibus product. Figures for age, sex, education and region were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online.
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 recently unveiled PORT, a secure device-based wallet infrastructure, allows consumers to conduct one-click purchases and transactions requiring identity verification, without the need to download a standalone wallet app. 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.
Dotted Line Communications for Jumio