According to a new report from identity verification solutions provider IDology, 58 million Americans fraudulently opened a new account in their name in the past 12 months, a 21% increase since the start of the pandemic.
Given the heavy reliance on smartphones for digital transactions, mobile device engagement increased, increasing by 71% in the last 12 months. Additionally, 96 million Americans expect fraud to increase in the next 12 months, with nearly 2/3 reporting that they are “extremely” or “very” concerned about cybersecurity and ransomware. Consequently, 61% of consumers are also very or extremely concerned about the possibility that criminals will use their personal information to open a new account.
Above fraud and identity theft An experienced and insecure mindset, Americans also distrust companies that collect personal information and lack confidence in their ability to protect it. Seventy percent suspect that companies collect data without their permission and 59% do not believe that companies do enough to safeguard the personally identifiable information (PII) they hold. The collection of data without permission and the inability of companies to protect it have raised significant concerns for consumers, with 53% very or extremely concerned about the practice. In that regard, 90% of those surveyed, or 227 million Americans, said they would support a law similar to the California Consumer Privacy Act (CCPA) in their state or at the federal level.
Given the reliance on data within the digital realm, businesses cannot overlook the growing importance of identity verification and backend capabilities in customer experience and trust building. As digital transactions increasingly replace face-to-face interactions and consumers become more protective of their personal information, it will be essential to verify identities in a way that builds trust and results in a seamless experience while protecting against fraud and identity theft.
Read the full report by IDology.
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