COVID-19 increased online security concerns and expectations
Our latest research revealed security trumps convenience when it comes to online experiences as Australians say security (56%) and privacy (25%) are the most important considerations when online.
The research, the second of three in a longitudinal study exploring the major shifts in consumer behaviour and business strategy, revealed only 7% of Australians consider the convenience of an online experience. The ability to communicate, work, shop, order food, even visit your doctor online has allowed many of us to continue conducting our daily lives this year, albeit virtually. With so much reliance on digital experiences, it’s surprising to hear convenience is not a high priority but it’s understandable that safety is of top of mind.
Following the COVID-19 outbreak, over half of Australians became more concerned about online activity, particularly online identity theft (36%) and having their credit card information stolen (35%). This follows the latest figures from the Australian Cyber Security Centre noting it responded to 2,266 cybersecurity incidents between 2019-2020. It is understandable therefore that this cohort of consumers now expect more protection from businesses, such as more visible security measures (54%) and additional security steps for any online activity (38%).
Given this heightened concern and expectation, it’s promising to hear 3 in 5 Australian business leaders expect their fraud management budgets will increase in the next six months, with more emphasis and investment going into customer authentication solutions.
However, the research highlighted a discrepancy between what methods Australian businesses currently use for fraud detection and protection versus what consumers would like them to use. Business leaders noted the likes of Captcha, security questions and tracking transaction history, payment anomalies and spending patterns as the most popular solutions. Meanwhile, Australians rate physical biometrics (86%), behavioural biometrics (83%) and multi or two factor authentication (79%) as the methods that make them feel the most secure.
Over 75% of Australians said when they had spotted businesses using either physical or behavioural biometrics over the past six months it really enhanced their opinion of the company, proving that having proper security processes in place goes hand in glove with improving customer experience.
Over half of Australian consumers also said they were expecting more clarity from businesses on how they are storing and protecting consumers’ personal data. 31% of people think companies are doing a better job at communicating this since the outbreak of COVID-19, which may be the driver behind 46% of Australians saying they are somewhat or very willing to share their personal data with businesses. A third said they are a little willing, with 16% not willing at all.
Take a look at our second Global Insights Report and infographic here.
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By Karine Smyth, Head of ID & Fraud, Experian A/NZ
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