IDology study reveals impact on data breaches

Wednesday 6 June 2018 10:38 CET | News

The IDology Consumer Digital Identity Study has revealed the impact of major data breaches and related headlines on consumer perceptions and preferences.

In the wake of continued record-setting identity data breaches in 2017 and 2018, the study’s findings further demonstrate the need for businesses and financial institutions to understand changing consumer behaviours and shifts in cybercrime and the need for stronger, yet frictionless identity verification to enable the overall growth of digital business.

Fraud concerns are impacting consumer choices online, with 83% surveyed having extreme to moderate concern that their identities will be used to fraudulently open accounts. Consumers see biometrics, knowledge-based authentication and one-time passcodes as the most secure methods of authentication. Overall, 90% of consumers are comfortable answering knowledge-based authentication questions to verify their identities but prefer demographic-based questions over credit-based questions two to one. 56% of consumers report that they are more likely to choose a financial institution if they know it offers advanced identity verification methods. When opening an account online, consumers place a premium on security (88%) and ease (72%), with 31% reporting they have abandoned signing up because it was too difficult or took too long.

The IDology study also reveals that despite increasing concerns, many consumers still use vulnerable password practices - 44% of those surveyed write passwords down while 73% seldom change them. The good news is that many consumers are open to using more secure authentication methods for online accounts.45% percent are extremely or very willing, with 92% saying they have some willingness to do so.

The study further revealed that many consumers place a higher responsibility to protect their identities on companies than on themselves, while still expecting a seamless experience – 67% percent strongly agree that it is a company’s responsibility to protect consumer data, compared to 59% who strongly agree that it’s a consumer’s personal responsibility.

The IDology Consumer Digital Identity Study reflects survey responses from 1,024 consumers, collected between March 7, 2018, and March 23, 2018. Survey respondents are representative of the online US population, ages 18 and older, and approximately 224 million people.

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Keywords: IDology, data breaches, report, survey, consumers, US, security, digital identity
Countries: World

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