New Zealand
New Zealand New Zealand
Consumers make most of their payments by internet banking
  • 74%
    BFSI
  • 70.5%
    TELCO
  • 54.5%
    RETAIL
  • 46.5%
    BFSI
  • 39.6%
    TELCO
  • 40.7%
    RETAIL
  • A higher percentage make payments via internet banking to banks and insurance companies, telcos, and retailers, respectively, compared to the regional average
  • Impact: Anti-fraud capabilities critical to the increased digital transaction frequency and customers’ trust in banks
Australia
Australia Australia
Consumers are most satisfied with the post-fraud service of banks and insurances companies
  • More than 70% satisfaction rate compared to 59.7% on average
  • Impact: Increased trust in BFSIs
Indonesia
Indonesia Indonesia
Consumers that encountered most fraud incidents in the past 12 months
49%
34.7%

AP Average

  • 49.8% have experienced fraud at least once compared to 34.7% on average
  • Impact: Overall anti-fraud capabilities need improvement
Singapore
Singapore Singapore
Consumers have the highest trust towards government
AP Average
  • 75.5% choose government agencies, compared with 51.7% on average
  • Impact: Trust of personal data protection is centered around government agencies
Vietnam
Vietnam Vietnam
Consumers encountered most fraud incidents in retail and telco during the past 12 months
  • 55%
    TELCO
  • 54.5%
    RETAIL
  • 32.8%
    TELCO
  • 35.2%
    RETAIL
  • 55% and 54.5% have experienced fraud at least once in retail and telco, respectively, compared to 32.8% and 35.2% on average
  • Impact: Overall anti-fraud capabilities need improvement
Thailand
Thailand Thailand
Most Thai consumers believe speed and resolution are severely lacking (response/ detection speed toward fraud incidents)
AP Average
  • 60.5% think it is most important, compared to 47.7% on average
  • Impact: Response time as one of key factors to fraud management to retain customers and gain their trust
India
India India as standalone
Consumers have the largest number of shopping app accounts in the region
India
  • Average of three accounts per person
  • Impact: Highest exposure to online fraud
Hong Kong
Hong Kong Hong Kong
The least percentage of consumers with high satisfaction level toward banks and insurance companies’ fraud management
AP Average
  • Only 9.7% are most satisfied compared to 21.1% on average
  • Impact: effective response towards fraud incidents to be improved
China
China China
Consumers are the most tolerant toward submitting and sharing of personal data
AP Average
  • 46.6% compared to the AP average of 27.5% are accepting of sharing personal data of existing accounts with other business entities
  • Impact: higher exposure of data privacy and risk of fraud
alert
Japan Japan as standalone
Consumers most cautious on digital accounts and transactions
50.7% Actively maintain digital accounts’ validity
27% AP Average
45.5% Do not do online bank transfers
13.5% AP Average
  • More than 70% did not encounter fraud incidents in past 12 months, compared to 50% on average
  • Impact: Relatively low risk of fraud

Demand for online convenience linked to heightened fraud risk

Demand for online convenience linked to heightened fraud risk

According to our recent Digital Consumer Insights 2018 report, e-commerce in the Asia-Pacific (APAC) region is thriving - with the majority of APAC consumers (71%) partaking in online purchases. But the risk of fraud is proving equally prolific, with one in five customers already experiencing detrimental breaches of their data.

 

The report, co-authored with advisory firm IDC, is based on an extensive consumer survey of 3,200 people across ten APAC markets, and delves into how well businesses prevent and deal with fraud risks – predominantly through the eyes of their customers.

 

What we found is that APAC is one of the world’s most dynamic digital and mobile economies. But constant demand for easier e-commerce journeys – particularly regarding electronics, travel and grocery purchases – is driving the opportunity for online fraud.

 

In emerging markets like Thailand and India, convenience is king, and mobile-led consumers therein are less aware or concerned about risk. However, more mature economies like Australia and New Zealand boast different priorities: Consumers want convenience, but are more aware of fraud risks and therefore act more conservatively.

 

This is highlighted by the fact that in these latter countries, customers are especially cautious about sharing their personal data in perceived risky environments (for example, public WiFi networks). And the consequence for businesses? Well, the report found consumers in Australia and New Zealand are among the least tolerant to a fraud incident (84% and 88% respectively).

 

Transformative technology

The unfortunate reality though, is that the more digital convenience we enable, the higher our fraud exposure – a major problem for both consumers and businesses across APAC. But there is a silver lining.

 

The report also shows that as we improve consumer understanding about the risks of fraud, consumers are more likely to be open to adopting security measures – including biometrics like fingerprint, facial and voice recognition.

 

In APAC, 13% of consumers are already willing to adopt biometrics (followed by 9% in Australia and 8% in New Zealand). Plus, the majority (57%) of APAC respondents noted that they are particularly comfortable with biometrics in government/non-commercial applications, while a substantial 38% of Australians and 37% of New Zealanders are willing to share their data to enable better protection against fraud.

 

As this prioritisation and acceptance of fraud protection measures grows, biometric data will increasingly be able to improve customer experiences and enhance security.

 

Data predicament

But until this acceptance becomes more ubiquitous, how can organisations in Australia and New Zealand protect their customers knowing they are among the least tolerant of fraud? 

 

One way for businesses to manage fraud is by gaining greater understanding of consumers' openness to share personal data to drive data-driven fraud detection measures. The report found that on a whole, consumers are willing to reuse their data between companies – the top reason in the overall APAC region being fraud detection, which is 16% more than sharing for the sake of convenience.

 

However, there are 5% who intentionally submit wrong information and one-fifth have made errors in the information they provide companies. This indicates a gap of knowledge and trust between companies and consumers, and the onus is on companies to be able to properly communicate the value of data to customers in ensuring their safety and create trust.

 

Increased levels of consumer education and transparencies of data sharing will allow businesses to not only manage fraud better, but also increase their accuracy of the single customer view – delivering better and more relevant services and products from businesses and strengthening the cycle of data sharing and, ultimately, the provision of convenience.

 

For more insights, download the Digital Consumer Insights 2018 report or visit Fraud and Identity Solutions to learn about how Experian can help you safeguard your business and your customers from fraud.

Read full article

Jon Malone

By Jon Malone 06/13/2018

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