A survey by data analytics company FICO has found up to 4% of UK consumers believe their identity has been stolen online.
The survey – conducted on the topic of identity proofing and digital banking – revealed identity theft is a substantial threat for people in the UK, with 1 in 10 UK consumers believing their identity has been stolen and used by a fraudster, while 1 in 25 believe it has already happened.
Up to two-thirds (66%) of those surveyed recognised identity proofing is conducted for their protection, while around 46% understood there was an element of regulation driving providers to carry out more checks. Only 13% of respondents believed this was done to allow financial institutions to sell more.
A majority (61%) of individuals saw identity proofing as a way for banks to protect themselves, while 56% regarded it as an important tool to prevent money laundering.
A key finding in the survey was that up to 31% of respondents are more likely to open a digital account than they were a year ago. This falls in line with the growing online-based trends seen during the COVID-19 pandemic, which encouraged people to make online applications for financial accounts. In tandem with this, 32% claim they are now less likely to open a financial account in a branch compared to the same time last year.
The survey also found consumer preferences have shifted during the past year. Up to 43% of respondents chose opening an account through a provider’s website, while only 26% chose to go into a branch to open an account. Around 19% of those surveyed prefer to use apps when opening a current account, 6% would open an account over the phone and 2% would by post.
FICO highlighted a surprising development in the survey was a particular reluctance by Generation Z members to open an account online. Commonly an age group described as digital-savvy, only 35% said they would choose to use an app when opening an account, with a mild 14% opting to sign up on a webpage.
The survey was conducted in January 2021 with 1,000 UK adults surveyed. The survey also included 13,000 consumers across Asia, North America, South America, Australia and New Zealand.
FICO head of EMEA fraud and financial crime solutions Matt Cox said, “The results from the survey show messages about financial security are resonating with consumers and that is extremely encouraging to see. While banks and financial service providers can create checks and tests to prevent fraud, it will always exist, and consumers must play their role in protection. Education and understanding why these checks exist are both important to the process. It is all about safeguarding their identities and finances.”
Cox continued, “The account opening preferences shed light on a sped-up process. Digital account opening was increasing long before COVID-19, but now, after having spent a year learning, navigating, and familiarizing with online options, consumers are becoming comfortable with them. Bank branches will not re-open at the same level as before the pandemic, so it is important consumers continue to build their expertise of online banking.”
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