Customers want online ID protection more than reimbursement from banks

Customers want online ID protection more than reimbursement from banks

The majority of Internet users are more concerned with getting identity safeguards for online banking than being reimbursed for losses, according to a US survey conducted by Javelin Strategy & Research and commissioned by Authentify.

Over half (58%) of the 2781 respondents surveyed said incurring a financial loss was not their primary concern about Internet banking. Instead loss of personal information and the possibility that fraudsters would commit financial fraud in their name were the two main worries.

The research also found that the vast majority of respondents - 90% - are willing to sacrifice convenience for stronger security protection for online banking.

Over three quarter (78%) of respondents wanted IDs to be verified using real-time authentication mechanisms in the event of suspicious account activity. Of these, more than 30% selected interactive phone calls or SMS text alerts as their preferred means to monitor transactions. Around eight per cent favoured traditional methods that delay a transaction until further authentication can be obtained by bank staff or written notification.

Commenting on the research, Stephen Knighten, a statistical analyst at Javelin, says: "These findings demonstrate that the financial services industry must go beyond zero liability protection and offer more comprehensive identity safeguards to gain the trust of consumers."

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