Blanket warnings flashing on the screen do get noticed, but users hardly take any mitigating actions, according to one survey.

Are you one of the 86% of people who receive and read fraud warning alerts from banks and e-commerce platforms but never heed any of the advice dished out to you?

According to new research, 58% of this majority (86%) who read fraud warning alerts have not done anything to stay safe even after being alerted. Yet, 94% of respondents in the research still expected proactivity from online companies or services they use when there is a risk of fraud.

In addition, consumers in the study wanted to be warned about fraud when they are online: this includes activities such as shopping (66%), online banking (64%) or online service (60%).

A matter of attitude

The research through an online survey, commissioned by Callsign, involved a sample size of 1,500 adults, of which 500 were in the UK, 500 were in the US, 250 were in Hong Kong and 250 were in Singapore. Fieldwork was completed on 12th January 2021.

In summary:  

  • 18% of respondents strongly agreed when asked if the companies and services they used online were doing a good job protecting them against fraud. So, whilst consumers expressed a desire for organizations to keep them safe, trust to do so was low.
  • 76% of respondents said they would like the choice to opt in or out of being sent fraud warning messages.
  • 94% of respondents expected online companies and services to be proactive when they are at risk of fraud; 41% wanted organizations to send a warning message and ask additional security questions before they could do anything else, to check that they fully understood the situation.
  • Respondents were very specific when it came to the different scenarios in which they would like to receive those warnings, such as when a website was insecure (52%), making an online payment or money transfer (42%), setting up a new account (38%) and logging onto an app or online (38%).

Commented Amir Nooriala, chief commercial officer, Callsign: “At first glance, our research suggests respondents want to make their own decisions around the risks they take, choosing to opt in or out of receiving fraud alerts, even ignoring them when they are delivered. However, there is a disconnect between the safety these warnings are supposed to bring and the poor user experience they cause— hence they are perceived as a nuisance.”

The firm’s General Manager (Asia Pacific), Namrata Jolly, added: “The research demonstrates that when organizations attempt to protect their customers through education during the user journey, if it is not delivered in a timely manner, people circumvent it to achieve the most frictionless experience. This presents an opportunity for organizations who do this well to win the digital trust of their customers. Passive behavioral authentication solutions and well-timed messaging must go hand-in-hand to create the most trusted, secure and frictionless customer journey possible.”