Consumers in Asia Pacific are more concerned with protecting their financial and payments information stored on a computer than they are with protecting this data when stored on a mobile wallet, according to new benchmark data, “Global Consumer Survey: Consumer Trust and Security Perceptions,” from ACI Worldwide and Aite Group.
The global fraud study of more than 6,000 consumers across 20 countries revealed that only 46 percent of global consumers in Asia Pacific trust businesses, including restaurants and merchants, to protect their financial data—while surprisingly, around 80 percent of consumers generally believe their mobile wallet data is secure.
As payments are increasingly shifting to mobile devices and global fraud continues to rise, consumers must be vigilant about mobile fraud protection. Across the globe, consumers are adapting to technology advancements—including the ubiquity of mobile wallets and a continued shift to online shopping—impacting their perceptions around payments data security.
Among Asia Pacific respondents, only 46% of consumers trust businesses (e.g., stores, online shopping sites, restaurants) to protect their financial and payments data (47% in Indonesia, 36% in Singapore, 40% in Australia, 42% in New Zealand).
Only in the India (60%) and Thailand (51%) do consumers report at least 50 percent confidence that their stored data is well-protected.
Around 80% of consumers report they feel at least somewhat secure with mobile wallets. India is a standout, with over 90% of consumers reporting they feel at least somewhat secure.
Across the region, the standout fraud concern is theft by computer hacking (37% in Indonesia, 33% in India, 31% in Thailand).
After experiencing fraud or a data breach, majority of consumers indicated they would stop shopping with a given merchant. (76% in Indonesia, 73% in India, 65% in Singapore).
Even though many institutions have some form of anti-fraud education and training, it does not seem to resonate with all consumers: Singapore, Australia, and New Zealand showed much lower levels of awareness of anti-fraud messages, with less than 50% of respondents in each country reporting they have seen some sort of anti-fraud education for 2016.
Majority of consumers are very interested in receiving a call or SMS message to their mobile device to help mitigate fraud.
“This data is a further wakeup call to the broader payments industry, including merchants, banks and financial intermediaries, that we must proactively educate consumers about security measures that are in place—to allay consumer concerns, which will not only result in enhanced customer experiences, but also help to reduce fraud losses,” said Andreas Suma, vice president and global lead, fraud and data, ACI Worldwide. “Moreover, consumers must become more proactive in securing their personal data by using the fraud prevention measures and services offered by their financial institutions.”
“Our research shows that consumers want to proactively manage fraud, particularly by leveraging mobile technology – whether it’s text or talk,” said Shirley Inscoe, senior analyst, Aite Group. “This willingness opens opportunities for financial institutions to optimize the ways in which they reach out and communicate with consumers, ultimately improving the customer experience while reducing operational costs and fraud losses.”