Sixty five per cent of Indian businesses have experienced an increase in online fraud-related losses over the past 12 months. This was against 50 per cent of businesses surveyed in the Asia-Pacific region that have seen an increase in fraud-related losses over the past 12 months from account originations and account takeovers — both potentially damaging brand reputation. The global average is 55 per cent with the US having the highest incidence at 80 per cent.
71 per cent say security is their number one priority during their online experience, followed by convenience and personalisation at 20 per cent and 9 per cent, respectively. However, most businesses tend to focus on offering a convenient experience first.
However, this suggests a mismatch between what is important to a customer in their online experience, thereby illustrating the tension between security and convenience, according to the report.
"While companies continue to innovate on new solutions that enhance the customer experience, there needs to be a focus on reducing the customer’s risk exposure by securing the data and information they currently access," said Sathya Kalyanasundaram, country managing director, Experian India. Despite the high levels of fraud, India placed the highest trust in banks and insurance companies, among other Asian Pacific countries. Sixty eight per cent of Indian consumers also place high trust in payment system providers.
The high trust levels, however, do not overcome the hesitance to share data with financial providers. Fifty seven percent of customers express concern, while only 12 per cent are willing to share their data. Majority of the respondents in India feel they are sacrificing privacy for convenience in today’s unpredictable threat landscape, said the report.
Identity theft and market alert frauds were the leading contributors to frauds in India. Other frauds faced by Indian businesses were fraudulent contact information, documents and third party fraud among others.