There was a reported £15.3 million lost to fraud in the UK between November 2021 and January 2022, and with just a few days until Christmas Day, panic mode could be setting in this year. The good news is that it appears UK shoppers recognize the importance of increased fraud checks by lenders and banks.
Global analytics software company FICO has revealed the findings from its latest survey with consumers showing an increased understanding of how and why fraud checks need to happen. Shoppers are also embracing biometrics to add layers of protection to their accounts.
UK consumers have noticed an increased level of checks when carrying out transactions or logging into their account. Some 63 percent reported an increase in identity checks when purchasing online with a card and 52 percent saw a rise in the number of checks carried out when logging into their bank accounts.
Consumers do trust their providers are confirming their identities for the right reasons. 72 percent understand it’s to protect them from fraud. And 57 percent recognize the role identity verification plays in preventing money laundering.
The other important change identified by the FICO research is consumer acceptance of biometrics for authentication. When asked about making a payment online with a debit or credit card, 48 percent selected fingerprint scans as an excellent way to secure an account. Another biometric data set – face scan – was the top choice to access an account securely for 45 percent of respondents.
The appetite for receiving one-time passcodes to verify online payments has also shifted as digital engagement through banking apps has increased. FICO’s survey in 2020 found that only 14 percent wanted to receive notification of a passcode to their mobile banking app. That has increased to 36 percent in the 2022 survey.
“As spending rises in the build-up to Christmas, it triggers a spate of scams shoppers must navigate to protect their finances,” said Matt Cox, vice president and managing director for FICO in EMEA. “It is good to see that consumers are taking note of the different types of fraud they may face and understand why banks need to carry out various identity checks while they make purchases.
“It’s also good to see that as new security methods become available, shoppers are embracing them. This is an essential part of the process. Any new anti-fraud tool will prove ineffective until consumers get on board with it.”