New York, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Veriff, a global identity verification and authentication platform, published The Veriff Fraud Index 2024: Part 2, a report on end-users' experiences with online fraud and their stance on fraud-prevention measures.
Three key findings from the report:
- Younger consumers are more enthusiastic about using biometric solutions for identity verification.
- Due to the US's larger digital economy, US consumers are more exposed to AI and deep-fake fraud than UK consumers.
- Consumers who fall victim to fraud expect the company involved to reimburse them.
“With this report, we aimed to understand both sides: the users’ perspective - what are their frustrations and needs, and also the online businesses' point of view - what are the dangers but also opportunities,” said Ira Bondar, Senior Fraud Group Manager at Veriff.
Consumers face unprecedented threats from online fraud which is growing in scale and complexity, fuelled by the power of AI. “End-users demand more from online platforms and expect businesses to protect them. The positive development is that individuals demonstrate a growing enthusiasm for biometrics, a crucial tool in defending consumers against fraudsters,” Bondar summarized the report's findings.
Generational views on online safety
When it comes to online safety, a generational divide emerges between the tech-savvy and the tech-skeptical. Younger generations, particularly those aged 25-34 (71%) and 35-44 (70%), are more enthusiastic about using technologies like identity verification (IDV) through IDs and selfies. They are also increasingly comfortable with biometric solutions to access accounts, 74% in the age group 25-34 and 72% in the age group 35-44. In contrast, older generations exhibit more hesitancy, though their acceptance of these technologies is slowly growing.
Online fraud is hitting younger users harder, with nearly 70% of 16-24-year-olds encountering fraud at least once a year, compared to 38% for those aged 45-54. This trend highlights the need for stronger IDV and biometric fraud prevention technologies. Consistently, over 60% of respondents across generations express comfort with using facial recognition for online account access, showing that the shift toward biometric security is becoming more widespread.
The geographical trends in deepfake fraud
AI and deepfake fraud are emerging threats, with over a quarter (28%) of respondents reporting they have encountered such fraud over the past year. However, this figure may be underestimated, as 15% of respondents are unsure if they have been targeted, suggesting the true impact could be higher. These sophisticated tactics pose unique challenges for both consumers and businesses, making the need for robust fraud prevention technologies even more critical.
Geographically, the survey reveals a stark difference between the US and the UK regarding exposure to AI and deepfake fraud. While 63% of UK respondents reported not being targeted, less than half (48%) of US respondents could say the same. In fact, nearly a third (32%) of US participants indicated they had been targeted by this type of fraud, compared to only 20% in the UK. These findings suggest that US consumers may be at greater risk, likely due to the country’s role as a technological hub and its larger digital economy.
Consumers expect companies to protect vulnerable users
When online fraud strikes, most consumers expect businesses to shoulder the financial burden. According to the survey, 75% of respondents who lost money to fraud in the past year said they expected the company involved to reimburse them. This expectation places pressure on businesses, particularly as the frequency and sophistication of online fraud continue to rise. Failing to protect customers from such incidents could not only lead to costly reimbursements but also damage customer trust.
The implications for businesses are clear: those who fail to invest in robust fraud prevention measures could face severe financial and reputational risks. While some may choose to deny reimbursement, this decision could backfire, leading to long-term harm to the company’s image and customer loyalty. On the other hand, by prioritizing fraud prevention and adopting advanced security technologies, businesses can mitigate these risks while enhancing their reputation as trusted service providers.
About The Veriff Fraud Index 2024: Part 2
These are the key findings of Veriff's new survey of consumers in the US and the UK, the latest of its bi-annual rolling reports. The survey carried out in August 2024, included 1,000 respondents aged 16+ across the two nations. The survey results are available by geography, gender and age demographics. Get a full report here.
About Veriff
Veriff is the preferred identity verification and authentication platform partner for the world's most innovative growth-driven organizations, including online marketplaces, financial services, crypto, gaming and mobility companies, and other sectors. Veriff provides advanced technology that combines AI-powered automation with reinforced learning from human feedback, deep insights, and expertise. Veriff is the partner of choice for organizations that need to rapidly and conveniently verify and safeguard users anywhere in the world.
