Half of banked consumers practice risky security behaviors

by: Nicole Reyes

As consumer awareness about the prevalence of payment fraud increases, more cardholders are becoming interested in protecting themselves. They are looking for convenient, simple ways to protect their accounts and identities. Consumer attitude about fraud is a crucial component for financial institutions to monitor because it provides an opportunity to help people understand what it really takes to maintain the security of their information.

It’s an opportunity the majority of credit unions and banks are not seizing – at least according to a Q1 2014 ACI Worldwide study of 6,159 consumers in 20 countries. In that study, 44 percent of U.S. consumers said they can’t recall receiving any anti-fraud information from their financial institution.

The report goes on to conclude nearly half of global consumers are demonstrating risky behaviors when it comes to their identities. Examples of this risky behavior includes carrying their PIN with their card, using public computers to shop online, throwing documents that contain personal information in the trash and leaving smartphones with personal information unlocked. Generally, these consumers do not take risks intentionally; they simply lack the proper education on the consequences of these behaviors in today’s world.

Financial institutions must get their cardholders involved in their own financial safety. Keeping individuals updated on fraud trends and scams will prevent misconceptions. Here’s one of those misconception brewing today:  Consumers believe shopping online is safer than shopping in-store.

Here’s another: Cardholders also appear to lack confidence in the new cards they are issued after a breach. Based on a recent Aite Group Impact Report, consumers with reissued cards say they used them, on average, 43 percent less as compared to their previous plastic.

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