Fraud Protection & Compliance
SAN JOSE, Calif. — May 13, 2020
- The FICO Consumer Digital Banking study examines how Americans are protecting their financial information online as reliance on digital services grows
- Study found only 42 percent of Americans use separate passwords to access multiple accounts
- Only 23 percent of Americans use a password manager and 28 percent report abandoning an online purchase because they forgot login information
- Consumers are becoming more trusting of using physical and behavioral biometrics to secure their financial accounts, as 78 percent say they would be happy for their bank to analyze behavioral biometrics
FICO, a global leader in financial crime prevention, today released its Consumer Digital Banking study that found a large percentage of Americans currently do not take the necessary steps to protect their passwords and logins online. As consumers reliance on online services grows in response to COVID-19, the study examined the steps Americans are taking to protect their financial information online, as well as attitudes towards increased digital services and alternative security options such as behavioral biometrics.
The study found that a large percentage of Americans are not taking the necessary precautions to secure their information online. For example, only 42 percent are using separate passwords to access multiple accounts; 17 percent of respondents have between two to five passwords they reuse across accounts; and 4 percent use a single password across all accounts. Additionally, less than a quarter (23 percent) of respondents use an encrypted password manager which many consider best practice; 30 percent are using high risk strategies such as writing their passwords down in a notebook.
“We’re seeing more cyber criminals targeting consumers with COVID-19 related phishing and social engineering,” said Liz Lasher, vice president of fraud portfolio marketing at FICO. “Because of the current situation, many consumers are only able to access their finances digitally, so it’s vital to remain vigilant against such scams and take the right precautions to protect themselves digitally.”
The study shows that consumers struggle with maintaining their current passwords as 28 percent reported abandoning an online purchase because they forgot login information, and 26 percent reported being unable to check an account balance. Forgotten usernames and passwords even affect new account openings, 13 percent said that it has stopped them from opening a new account with an existing provider.
This is a notable trend as consumers are more willing than ever to do business digitally. The study found that the majority of respondents would open a checking (52 percent) or mobile phone (64 percent) account online, while an overwhelming majority of respondents (82 percent) said they would open a credit card account online.
However, while there is significant room to improve how consumers protect their login credentials, the survey also found that Americans are becoming more trusting of using physical and behavioral biometrics to secure their financial accounts. The survey found that 78 percent of respondents said they would be happy for their bank to analyze behavioral biometrics - such as how you type - for security and 65 percent are happy to provide biometrics to their bank; while 60 percent are open to using fingerprint scans to secure their accounts.
Additionally, when logging into their mobile banking apps, respondents are now considering alternative security measures beyond the traditional username and password. The five most widely used security alternatives are:
- One-time passcode via SMS (53 percent)
- One-time passcode via email (43 percent)
- Fingerprint scan (39 percent)
- Facial Scan (24 percent)
- One-time passcode delivered and spoken to mobile phone (23 percent)
“Digital services are currently playing a critical role in daily life. It is a good time to evaluate how we protect ourselves and our information online,” said Lasher. “Customers have been happy to adopt security such as one-time passcodes, and are now showing that they are willing to adopt additional options, such as biometrics, to protect their accounts. There are no magic bullets and the ability to layer and deploy multiple authentication methods appropriate to each occasion is key. Financial services organizations and consumers need to continue to keep security best practices top of mind to help combat fraudsters now and in the future.”
For more information on protecting your information online, check out the FICO Consumer Digital Banking study blogs on Customer Experience and Fraud as well as Security and Authentication in a Digital World.
Also read the FICO blog: 8 Tips for Avoiding COVID-19 Scams.
Results of an online, qualitative survey of 5,000 adults (over 18) across 10 countries carried out on behalf of FICO by an independent research company.
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956 and based in Silicon Valley, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 195 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of airplanes and rental cars are in the right place at the right time.
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Porter Novelli for FICO
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