PORTLAND, Ore. and LAS VEGAS, Oct. 29,
2019 /PRNewswire/ -- iovation, a TransUnion (NYSE:TRU)
company, today announced the results of its "2019 Financial
Services Fraud and Consumer Trust Report" at Money 20/20
USA. The report includes the
analysis of tens of billions of global online financial
services transactions that iovation and TransUnion have
screened for fraud, as well as a survey of 1,604
consumers.
"Our research determined three key market drivers that will
shape the financial services industry in 2020," said Melissa Gaddis, iovation's senior director of
customer success. "Consumer trust is a competitive difference,
fraud is going mobile mirroring consumer behavior and customer
satisfaction is driven by the mobile platform."
Some of the financial services findings in the report
include:
Consumers go mobile
- Mobile device usage as a percentage of all online transactions
has increased from 28% in 2014 to 61% so far in 2019.
- Mobile app usage grew at twice the rate of mobile web usage,
from 15% in 2014 to 39% in 2019. Mobile web transactions went from
14% in 2014 to 22% in 2019.
- 62% of mobile consumers used iPhones, 34% Android devices, and
just 4% iPads between September 2018
and September 2019.
Fraudsters go mobile too
- Since 2017, the percentage of suspected fraudulent transactions
from mobile devices increased 138%. This far outpaced the growth in
overall mobile transactions which only grew in the same time by
30%.
- So far in 2019, 50% of suspected fraudulent transactions were
from mobile devices. In 2018 that statistic was 41% and in 2017 it
was 21%.
Trust and security influence which financial institutions
consumers use
- 3 out of 4 consumers (72%) say account security and privacy are
primary factors in deciding which institution they bank with/have a
credit card with.
- 2 out of 3 consumers (64%) would switch financial services
companies for one that has more advanced security protocols in
place.
- 2 out of 5 consumers (39%) have already closed an account with
an online financial services company due to security and fraud
concerns.
"Sorting out fraudsters—who try to camouflage themselves with
behavior that looks very similar to good customers—is always going
to be a challenge in the mobile space," said Mary Ann Miller, head of fraud strategy at
customer Varo Money. "In building
our security systems, we put a lot of thought into the right
balance of customer experience and safety. Otherwise we're putting
up walls at the expense of good customers."
"It's clear consumers have taken notice of the thousands of
global breaches exposing hundreds of millions of people's personal
information each year," said Don
Bergal, senior vice president of marketing at partner
Temenos. "iovation's findings bring to light just how crucial
security and privacy is for both protecting consumers and
benefiting banks' bottom lines."
The complete iovation "2019 Financial Services Fraud and
Consumer Trust Report" is available Nov.
5. Register to receive it here. To discuss the findings
at Money 20/20 USA, find iovation
at booth 4126.
Methodology
The financial services transactions
iovation analyzed include those from day-to-day banking, credit
cards, investments and loans for industries like automotive and
e-commerce. The transactions iovation have analyzed so far in 2019
span from Jan. 1 to September 24,
2019. Between September 17 and 22,
2019, iovation collaborated with Insights West to survey 802
consumers from the United Kingdom
and 802 consumers from the United
States.
About iovation
iovation, a TransUnion company, was
founded with a simple guiding mission: to make the Internet a safer
place for people to conduct business. Since 2004, the company has
been delivering against that goal, helping brands protect and
engage their customers, and keeping them secure in the complex
digital world. Armed with the world's largest and most precise
database of reputation insights and cryptographically secure
multifactor authentication methods, iovation safeguards tens of
millions of digital transactions each day.
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SOURCE iovation