UK Consumers Voice Concerns About ID And Payment Fraud Online
National Study Shows Merchants Failing to Verify Buyer Identities; Nearly 1 in 5 adults have experienced fraud in the UK and the problem is even worse in the USA
London. – October 24, 2013 – 79% of Brits have indicated that they are concerned about online ID theft according to the new Consumer Insights Study: Fraud and Identity released today by Jumio, Inc. and conducted online by Harris Interactive. Of those concerned with ID fraud, the vast majority (82%) were specifically concerned about fraudulent activity on their credit card or bank account.
With fraud costing the UK economy £52bn last year 1, the infrastructure for tackling fraud online still needs improvement – and the British public is still not confident with current fraud prevention measures.
“With Britain leading the way in ecommerce in Europe with a turnover of 96 million Euros2 in 2012 (Germany a distant 2nd with 50 million Euros) it is frustrating that the industry still faces serious issues of payment and identity fraud,” said David Pope, Marketing Director for Jumio in Europe.
The problem is global however, and in the USA nearly 1 in 4 people have been victims of online payment fraud, as reported by a related study by Jumio (see companion release ‘Consumers Taking Credit Card Anti-Fraud Measures into Their Own Hands; Don’t Feel Merchants Are Heeding Call’)
Mr Pope continued “It is testament to the British people that so many of them are aware of online security pitfalls – but what is worrying is the lack of infrastructure to tackle ID fraud in the UK.”
“While most merchants realise that fraud is a major problem, they need to look at their role in prevention, including taking the necessary steps to confirm that a person conducting a transaction is actually who they say they are.”
Key findings from the survey include:
Britain wants to be more secure…
Whilst the ecommerce industry is booming most Briton’s have concerns over the security of their ID and payment details online.
- Almost four in five (79%) GB adults showed concern about their identity being stolen.
- A vast majority (82%) showed concern about fraudulent charges being made against their credit card or bank account.
1. Figures from Annual Fraud Indicator, National Fraud Authority – June 2013 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/206552/nfa-annual-fraud-indicator-2013.pdf
Britain would embrace electronic and remote ID verification…
Although the UK has no requirement for a formal ID card, as found in other countries in Europe or the USA, well over a third of Brits would prefer to carry a digital ID document rather than its paper equivalent.
- 38% of GB adults in principle would prefer to carry and display a digital image of their driver license/ID on a smartphone as opposed to carrying their ID in the traditional way (e.g., wallet, purse or pocket).
You may be friends with a fraudster…
- Nearly a quarter of respondents (23%) 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).
- 1 in 5 (19%) have reported fraudulent charges made to their bank or credit card account.
- Interestingly women are over a third more likely to report fraudulent charges on their accounts than men.
Alcohol and Tobacco products are the lead target for those using a fake ID – closely followed by restricted gaming products and gambling.
- Of those respondents that admitted to using a fake ID, 72% of them used it for purchasing Alcohol. (Interestingly nearly 1 in 6 broadly believe there is nothing wrong with obtaining alcohol with fake ID).
- In addition to Alcohol 30% used it for Tobacco products and 24% used it for restricted gaming and gambling purposes.
- 4% of those with Fake ID have used it to obtain a credit card.
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.
This survey was conducted online within the United Kingdom between 2nd -9th September, 2013 among 2,076 adults ages 18 and older by Harris Interactive on behalf of Jumio via its Harris Poll Omnibus. Figures for age, gender, region, education and internet usage were weighted where necessary to bring them into line with their actual proportions in the population. For complete survey methodology, including weighting variables, please contact Matt Pears at firstname.lastname@example.org or 0844 2939 764.
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.
0844 2939 764 / 07718 190 451