Globally, 3 in 10 Consumers Don’t Trust Retailers With Securing Their Data
July 22 2014 - 8:00AM
Business Wire
China and India have highest rates of prepaid
card fraud, 17 percent and 18 percent, respectively, according to
latest global consumer fraud study from ACI Worldwide and Aite
A global fraud study of more than 6,100 consumers across 20
countries revealed distrust among global consumers in retailers to
protect their data. The new study, “Global Consumers: Concerned and
Willing to Engage in the Battle Against Fraud,” is the second in a
two-part series conducted by ACI Worldwide (NASDAQ: ACIW) and Aite
Group. Among other findings, only slightly more than 50 percent of
consumers feel stores where they shop use security systems that
adequately protect their financial data against hackers and data
breaches.
Retailer Concerns
- Nearly 3 in 10 global consumers (29
percent) do not trust retailers (e.g., stores, online shopping
sites, restaurants, etc.) to protect stored personal and financial
data against hacking attempts and data breaches.
- 58 percent think financial institutions
(large multinational institutions, community banks and credit
unions) do a better job of protecting their data than do retailers,
or for that matter, government agencies and law enforcement.
- Only 55 percent feel stores where they
shop use security systems that adequately protect their financial
data against hackers and data breaches, compared to 62 percent who
believe that online shopping websites adequately protect this
information.
Mobile Customer Engagement
- More than 3 in 4 global consumers (77
percent) are “very interested” in being contacted about suspicious
activity on their cards or accounts via a phone call, email or text
message.
- Approximately 3 in 4 (73 percent)
prefer that their banks not post transactions to their cards until
they respond to fraud alerts.
Consumer Awareness
- More than 4 in 10 global consumers (42
percent) do not recall receiving any anti-fraud information from
their financial institution.
- More than 3 in 10 (32 percent) think
theft by a computer hacker is the greatest fraud risk.
Prepaid Card Implications
- In many countries, prepaid card usage
and the rate of fraud on such cards correlates. China and India
have the highest rates of prepaid card fraud at 17 percent and 18
percent, respectively, and very high consumer use rates at 93
percent and 91 percent, respectively.
- Conversely, in countries with use rates
of 70 percent or less, such as Australia, Canada, New Zealand and
the United States, fraud rates are 4 percent or less, indicating
that the fraud rate may rise as more consumers use prepaid
cards.
Quotes
- “Consumer distrust is exacerbated by
the widely publicized retail data breaches over the past year,”
Mike Braatz, senior vice president, Payments Risk Management
Solutions, ACI Worldwide.
- “Retailers have their work cut out for
them—to change consumer perception that shopping, be it online or
in-store, is unsafe,” Mike Braatz, senior vice president, Payments
Risk Management Solutions, ACI Worldwide.
- “Consumers want to engage in the battle
against fraud. Financial institutions must take a proactive role in
not only engaging customers in fraud-alerting activities, but
educating them on preventative measures to take to most effectively
combat it,” Shirley Inscoe, senior analyst, Aite Group.
- “Communication is key when it comes to
financial institutions making customers aware of the tools
available to fight fraud. This can have a big impact in customer
satisfaction and loyalty,” Shirley Inscoe, senior analyst, Aite
Group.
To receive a complimentary copy of the two-part report, please
click here or visit www.aciworldwide.com/2014fraudsurvey.
Survey MethodologyACI Worldwide conducted online
quantitative market research via a March 2014 survey of 6,159
consumers; approximately 300 consumers, divided equally between men
and women, participated in each of the 20 countries. Of the total,
6,041 own one or more type of payment card (i.e., credit card,
debit card, prepaid card). The study was conducted in a total of 20
countries in the following regions:
- The Americas (North and South America):
Brazil, Canada, Mexico, and the United States
- EMEA (Europe, the Middle East, and
Africa): France, Germany, Italy, the Netherlands, Poland, Russia,
South Africa, Sweden, the United Arab Emirates, and the United
Kingdom
- Asia-Pacific: Australia, China, India,
Indonesia, New Zealand, and Singapore
About ACI WorldwideACI Worldwide, the Universal Payments
company, powers electronic payments and banking for more than 5,000
financial institutions, retailers, billers and processors around
the world. ACI software processes $13 trillion each day in payments
and securities transactions for more than 250 of the leading global
retailers, and 21 of the world’s 25 largest banks. Through our
comprehensive suite of software products and hosted services, we
deliver a broad range of solutions for payment processing; card and
merchant management; online banking; mobile, branch and voice
banking; fraud detection; trade finance; and electronic bill
presentment and payment. To learn more about ACI, please visit
www.aciworldwide.com. You can also find us on Twitter
@ACI_Worldwide.
About Aite GroupAite Group (www.aitegroup.com) is an
independent research and advisory firm focused on business,
technology, and regulatory issues and their impact on the financial
services industry. With expertise in banking, payments, securities
& investments, and insurance, Aite Group's analysts deliver
comprehensive, actionable advice to key market participants in
financial services. Headquartered in Boston with a presence in
Chicago, New York, San Francisco, London, and Milan, Aite Group
works with its clients as a partner, advisor, and catalyst,
challenging their basic assumptions and ensuring they remain at the
forefront of industry trends.
© Copyright ACI Worldwide, Inc. 2014.
ACI, ACI Payment Systems, the ACI logo and all ACI product names
are trademarks or registered trademarks of ACI Worldwide, Inc., or
one of its subsidiaries, in the United States, other countries or
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discretion. ACI is providing the following information in
accordance with ACI's standard product communication policies. Any
resulting features, functionality, and enhancements or timing of
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Media Contact:ACI WorldwideDan Ring,
781-370-3600dan.ring@aciworldwide.com
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