TransUnion’s fraud prevention arm iovation has released the results of its latest report, “2019 Financial Services Fraud and Consumer Trust Report”.
Featuring fraud analysis of “tens of billions” global online financial services transactions, the report shows as daily life heads towards a more mobile-centric approach, so do the fraudsters.
“Our research determined three key market drivers that will shape the financial services industry in 2020,” commented 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.”
An example of the transition sees consumer mobile device usage of all online transactions has increased from 28% in 2014 to 61% so far in 2019.
Alongside this presents more fraud opportunities; since 2017, the percentage of suspected fraudulent transactions from mobile devices increased an astonishing 138%.
Furthermore this year alone, 50% of suspected fraudulent transactions were from mobile devices, in comparison to 2018 (41%) and 2017 (21%).
“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.”
The report also surveyed 1,604 consumers focusing on trust and security, with 72% stated account security and privacy are “primary factors” when deciding which institution they bank with.
Consumer respect for security is clear with 64% of people asked agreed they would switch financial services if a company has more advanced security protocols in place.
“It’s clear consumers have taken notice of the thousands of global breaches exposing hundreds of millions of people’s personal information each year,” added 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.”
