Online fraud actually decreased by 33 percent during the holiday shopping period of Black Friday to Cyber Monday, and it dropped by 17 percent throughout 2017, a recent Jumio study found.
The average online fraud rate in 2016 was 1.181 percent, dropping to 0.993 percent in 2017. During the Black Friday to Cyber Monday period in 2016, the online fraud rate was 1.373 percent — it dropped to 0.921 percent during the same period in 2017.
Similarly, fraud using U.S. IDs during the Black Friday to Cyber Monday period grew 182 percent from 2014 to 2016, then dropped 29 percent in 2017.
Some sectors continue to be hit harder than others — in 2016, the financial services sector experienced a 57.4 percent spike in fraud from Black Friday to Cyber Monday, and in 2017, the sector experienced an 18.4 percent increase during the same period.
Still, Jumio director of product management Reinhard Hochrieser said in a statement that no one should respond to the news by becoming complacent. “Instead, they should continue investing in ID and identity verification solutions to deter fraud and better establish identity, without scaring off good customers,” he said.
“Growing tactics like facial scanning and eyeball tracking make it incredibly difficult for fraudsters to mimic someone they’re not,” Hochrieser added. “And if a business puts up enough hurdles, fraudsters move on to easier online targets.”
Consumer Security Concerns
And when companies make the investment, customers appreciate it. A recent Gemalto survey of more than 10,000 consumers worldwide found that just 27 percent feel that businesses take customer data security very seriously, and 70 percent would stop doing business with a company if it experienced a data breach.
Still, customers aren’t taking action to protect themselves — 56 percent of respondents admitted that they use the same password for multiple online accounts. And even when companies offer additional security solutions such as two-factor authentication, 41 percent of respondents don’t use it to secure social media accounts.
That may be because 62 percent of respondents believe the business holding their data is mostly responsible for its security, and 93 percent would take, or would consider taking, legal action against the business if their data is stolen.
“Consumers are evidently happy to relinquish the responsibility of protecting their data to a business, but are expecting it to be kept secure without any effort on their part,” Gemalto CTO for identity and data protection Jason Hart said in a statement. “In the face of upcoming data regulations such as GDPR, it’s now up to businesses to ensure they are forcing security protocols on their customers to keep data secure.”
“It’s no longer enough to offer these solutions as an option,” Hart added. “These protocols must be mandatory from the start — otherwise businesses will face not only financial consequences, but also potentially legal action from consumers.”
Sixty-seven percent of respondents worry they’ll be victims of a data breach in the near future. Fifty-eight percent think social media sites present one of the biggest threats to their data, and 20 percent worry about travel sites.