33% of consumers in Asia Pacific are most concerned about being tricked into making payment to a criminal, according to a FICO survey.
FICO recently unveiled its latest global consumer fraud research, shedding light on APAC consumers’ ongoing apprehension regarding real-time payment scams amid the growing adoption of new, convenient, and fast payment channels.
According to the study, the primary worry in the region is the risk of being tricked into sending money to criminals (33%), which exposes individuals to instant, irrevocable losses rarely eligible for reimbursement.
Additionally, concerns about identity theft persist, with 26% of Asia Pacific respondents to the survey citing it as their top financial crime concern. This type of fraud carries additional risks beyond financial loss, such as compromised credit scores and the challenging process of restoring financial integrity.
The study was conducted in November 2023 by an independent research company, which surveyed approximately 13,000 consumers in Canada, the US, Brazil, Colombia, Mexico, India, Malaysia, Indonesia, the Philippines, Thailand, the UK and Spain.
The rapid adoption of real-time payment in Asia Pacific has made the region a key target for scammers in the region, according to C K Leo, FICO’s lead for fraud, security and financial crime in Asia Pacific.
Amid the region’s growing concerns about payment scams, he said: “As the adoption of real-time payments surges, we’re witnessing a transformative shift in financial behavior. Yet, with rapid digitization comes an urgent need for heightened vigilance against fraudsters lurking in the digital realm.”
Perception vs. reality
Despite widespread concern about identity theft, there is a noticeable dissonance between perception and reality in APAC. 33% believe it unlikely they’ve been a victim, while 17% see it as possible, while another 17% are confident their identity remains untouched.
Moreover, only 8% of the region’s respondents reported their stolen identity being used to open a financial account. While this rate was 6% for Singapore, it was much higher in some other countries in the region, with 13% of Indians and 12% of Thais saying their identity had been stolen and used to open an account by a fraudster.
“Identity theft can leave its victims with substantial financial losses, underscoring the need for financial institutions to heighten fraud awareness and bolster proactive measures,” said Leo. “A key first step is to break down silos and integrate identity verification and fraud detection processes. This will allow financial institutions to streamline applications and bolster trust in legitimate customers.”
Seeking a balance between strong fraud protection and convenience
When selecting a new provider for a financial account, respondents identified robust fraud protection and ease of use as their top priorities. Notably, good fraud protection was far ahead, ranked as the most important quality by 32% of consumers, while ease of use was prioritized by 30%.
Other factors, such as good customer service, strong anti-money laundering policies, sound environmental practices, ethical use of customer data, fair treatment, and good value for money, were considered significantly less important.
“Fraud protection is increasingly seen as a selling point rather than just a cost center for banks,” concluded Leo. “Consumers are highly aware that most theft threats are now online, making robust fraud protection a critical factor in their decision-making process.”
