Online fraud gives consumers pause

Fraud related to digital payments is running amok, resulting in many consumers rethinking their trust in digital payments. Two recent surveys illustrate this phenomenon. Among consumers surveyed by the insurance company Chubb, 61 percent had changed their behavior or reduced their use of payment platforms due to fears about cyber scams.

Chubb surveyed 2,600 consumers in eight countries—the United States, Mexico, Brazil, Indonesia, Singapore, the Philippines, Thailand and Vietnam—about nine different types of scams. All had made at least one digital payment in the past year, and 63 percent had been victims of cyber scams, or knew someone who had been victimized.

"The impact of this fraud extends beyond financial losses, eroding trust in payment platforms, hindering adoption," Chubb said in a statement detailing the survey results.

Surveyed consumers said they were most troubled by phishing/vishing and impersonation scams, as well as fake product or service purchases. Here are some specific results:

• 32 percent said they don't trust the security of digital payment technologies.
• About three in 10 (29 percent) don't trust platforms to protect their confidentiality.
• 53 percent worry about their accounts being hacked.
• 48 percent worry about potential data breaches.
• 46 percent cited the possibility of being scammed as a barrier to trust.
• 37 percent indicated unease about being able to recover their money if they get scammed.

Leveraging AI to thwart identity thieves

The Chubb survey comes on the heels of the 2024 ACI Speedpay Pulse Report, which revealed that more than three-quarters of Americans now prefer to pay their bills digitally. However, with increased use of digital payments come heightened risks: almost one in five consumers has fallen prey to online identity theft, ACI Worldwide reported.

The solution, suggested Ron Shultz, general manager of ACI Speedpay, may come from leveraging artificial intelligence.

"The surge in digital payments adoption presents promising growth opportunities for billers, but the threats of online identity theft and other risks continue to burden consumers," Shultz said. "This creates a prime opportunity for billers to enhance their payment capabilities with advanced AI-powered fraud management solutions and double down on fraud awareness to create a differentiated and secure customer experiences."

Highlights of ACI's survey findings include the following:

• 77 percent of Americans now prefer to pay their bills online, with 26 percent saying they prefer using their mobile devices rather than websites.
• 18.7 percent have fallen prey to online identity theft, with two in five reporting an incident that resulted in accounts being opened in their names.
• More than a third of consumers believe their data is less safe today than it was five years ago.
• Almost 50 percent of consumers surveyed do not believe that companies properly educate them on how to keep their data secure.
• Consumers' fear of scams is making debt collection more difficult; 34 percent of those surveyed said they avoid communications from debt collectors.

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

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