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Australians lose trust in online banking amid identity theft fears
Tue, 16th Jan 2024

A recent survey conducted by Ping Identity, a prominent provider of seamless and secure digital experiences, sheds new light on the growing Australian consumer distrust in online banking security. With the participation of 1,600 adult Australians, the survey acknowledges the escalating apprehension over identity theft risk.

The results show that 65% of Australians listed identity theft as their main worry when their personal details are posted or stored online, surpassing concerns about financial loss or surveillance. This widespread concern follows a chain of high-profile data breaches that have successfully made consumers more attentive to the potential risks of identity theft.

Ashley Diffey, VP of Sales APAC and Japan for Ping Identity, shared, "Consumers have become alert to the risk of identity theft, and it has them worried. They want to continue to enjoy the convenience of transacting with financial services providers digitally, but they also want assurance that the information they share is safe." To address this, he warned, "Organisations that fail to offer the surety consumers are seeking may struggle to maintain their share in the marketplace."

The survey additionally underlines the significance of firm identity verification measures while conducting online transactions. Interestingly, 41% of respondents concurred that they would be more guarded against fraud if businesses introduced biometric authentication. On the other hand, 50% felt more secure with the deployment of multi-factor authentication (MFA), and a further 50% said that single-use log-in codes sent via text or mail put them at ease.

The potential misuse of artificial intelligence (AI) to craft impersonations online has also raised valid concerns among Australians. Accordingly, 53% expressed their alarm over the probable application of AI technology to mimic them. At the same time, a similar percentage asserted that MFA application by a business reassures them, indicating the company's priority to protect their data. However, only 60% divulged their explicit trust in banks for managing their identity data.

A significant proportion of surveyed Australians, over two-thirds, confessed their belief in never being entirely in control of their personal information on the Internet. Also, 77% wish to restrict the types of personal data accessible to companies and limit the number of companies with access to their details.

Diffey concluded by discussing Australian consumers' prolific use of digital services, including online banking, but noted they have "learnt the hard way that the personal information they share with organisations can be compromised." He asserts that to maintain customers' trust and confidence, "financial services providers need to create easy, secure, and personalised experiences that alleviate their security concerns, without collecting excessive personal data."

The survey was conducted by Ping Identity, a company specialising in providing identity management and security solutions. It focuses on enabling secure and seamless access to applications and resources for individuals across various devices and platforms. Ping Identity's services include identity and access management, single sign-on, multi-factor authentication, and other solutions aimed at enhancing the security and user experience in the digital space.