The State of Digital Identity 2022
Onboarding & fraud protection – the challenges of ‘The Great Switch’
Fraud & Digital Identity during ‘The Great Switch’
Identity fraud is rife and consumer behaviour is rapidly changing. Our latest State of Digital Identity report reveals that consumers are now more than willing to ditch a brand that fails to keep their details secure or delivers poor customer experience. And with more goods and services online, digital identities are more vital than ever before. So how prevalent is identity fraud? How is consumer behaviour changing? And what digital identity trends will unfold in 2022 and beyond?
Top takeaways
- Almost one-in-ten consumers have been hit by fraud in the last 12 months
- Nearly a third of businesses don’t use any identity verification service
- 57% of consumers rate security as the most important factor when opening a new digital account
Identity fraud - a matter of when, not if
Online services are ubiquitous to our modern day lives. We do our banking online, book doctors appointments, order takeaways and an increasing number of people trade stocks or buy crypto online. In this context, digital identity has become critical.
However, our research has found that businesses rated themselves just 6 out of 10, when it comes to striking the right balance between delivering a friction-free approach and fraud prevention.
This has led to identity fraud hitting consumers hard. Many feel it’s a matter of when, not if. Almost one in ten have been a victim of fraud in the last 12 months, while 92% said they believe that it is inevitable.
Understanding identity – the key to business growth in the ‘Great Switch’
While identity fraud is increasing, consumer behaviour is changing. With people spending increasingly more time online, the consumer of 2022 has started to re-evaluate whether they’re getting the best service possible or whether it’s time to try a new provider. Many have concluded that it’s time for change – with two-thirds (66%) of European consumers signing up for a new account in the past 12 months. Queue ‘The Great Switch.’
If businesses are to grow in the year to come, they must provide a great customer experience while balancing friction and fraud prevention during the onboarding experience.
A better understanding of the complex data points that shape who we are will help businesses thrive - enabling swift verification and onboarding of new consumers, while keeping them safe from fraud.
How to get the balance right
So how can businesses get this balance right? How can they simultaneously keep customers safe and deliver a great, frictionless customer experience?
Our research report explores digital identity trends, current and future fraud threats, and outlines how brands can build trust in a digital world and benefit from the ‘Great Switch.’