An IDC InfoBrief, sponsored by Mitek, highlights significant trends in consumer satisfaction and the ongoing battle against AI-generated fraud.
The report, titled “Biometrics Key to Customer Satisfaction and Combating AI-Generated Fraud,” presents compelling evidence that biometrics use in online account access leads to greater consumer satisfaction.
As the threat of AI-powered fraud escalates, with digital payment fraud losses expected to exceed $362bn globally between 2023 and 2028, the IDC study reveals a decisive move towards enhanced consumer authentication technologies.
The report unveils that 83% of organisations have invested in improving authentication technology, with 60% actively enabling multi-layered authentication. A further 33% plan to deploy such systems soon. These advanced systems, incorporating multiple biometric measures like facial recognition, voice, and fingerprint authentication, offer superior security while reducing the maintenance burden of traditional password-based systems.
From the consumer’s perspective, 77% of those using biometrics expressed satisfaction. Alarmingly, 25% reported online account hacks, and over a third switched providers following unsatisfactory responses to hacking incidents. The frustration with conventional username/password systems is palpable, as one in three consumers find remembering multiple credentials challenging.
IDC Associate Research Director Mark Child emphasized the dual responsibility companies face: reducing corporate risk while ensuring customer security. Adam Bacia, Senior Director of Product at Mitek, also pointed out the inadequacy of current authentication methods and the necessity of adopting technology capable of countering AI-generated threats effectively.
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