1 in 5 adults have fallen victim to fraud in the last twelve months, losing an average of £1,000 per person due to inefficient passwords – biometrics is on the rise to change that
LONDON, UK – 2nd May 2019 - The UK is ready to fight fraud with biometrics, according to new research revealed by Nuance on World Password Day.
The new research - carried out by OnePoll and commissioned by Nuance - asked 1,000 adults aged 18+ in the UK how they feel about traditional passwords and the potential of new technologies designed to safeguard their data and reduce fraud.
According to the poll, consumer comfort over the use of biometrics - which authenticates individuals by their physical and behavioural characteristics - is growing in the UK, with more than two thirds (64%) saying they feel comfortable using the technology.
The study also reveals that nearly one in three (35%) respondents already rely on biometrics technology - via fingerprint or facial biometrics - to unlock their smartphones many times each day to gain access to their personal content and services. 18-24s are shown to be most prolific in their use of fingerprint biometrics, with nearly half (45%) relying on this to unlock their phones, compared to just 17% of over 55s.
Password frustrations are real
Passwords are still creating challenges for UK consumers. The study found consumers manage an average of 14 online accounts (for example, emails, banking, bills, shopping, entertainment, etc.) each and have to remember around nine different passwords for use across those accounts for access.
Two in five (38%) customers forget their passwords at least once a month, with a quarter (25%) of respondents calling a contact centre around once every three months to reset login credentials following this issue.
“This year’s World Password Day comes at an interesting time in the world of security, as fraudsters continue to evolve their hacking strategies and consumers demand more streamlined access to their accounts. Biometrics takes the onus away from insecure and tedious PINs and passwords and places the emphasis on our unique characteristics – making authentication not only more secure but a lot easier to do” said Brett Beranek, General Manager, Security Business, Nuance Enterprise.
Fraud still hitting consumers hard
More than causing frustration, there is compelling evidence to suggest that traditional passwords are not secure. Nearly one in five (17%) UK citizens have fallen victim to fraud in the last 12 months, losing an average of nearly £1,000 stolen per person. Nearly three times as many 18-24s (29%) have fallen victim to fraudsters, compared with over 55s (11%). However, those over 55s who were affected by fraud have paid the price, with average losses of over £1,600 for this age group. To make matters worse, fraud claims took over a month on average to be resolved.
Consumers in the UK are quick to act when this happens, with three in five (60%) respondents noting they would likely change service providers if they fell victim to fraudsters through their services – and the loss of bank, online shopping and utility account details were cited as most inconvenient. That said, one in 10 (11%) victims haven't changed their security information following fraudulent activity, with around a third (29%) only changing their login details for some other accounts leaving them exposed to further criminal activity.
“Despite reports that fraud costs the UK economy over £100bn per year – and this research revealing the negative impact on millions of British citizens it has caused – there is still work to be done to communicate the benefits of using new technology such as biometrics for security. Nuance Security Suite has prevented over $1bn worth of customers’ money from getting into the wrong hands. With that, we believe deploying biometrics should represent the future of authentication,” Beranek added.
Getting ready to prevent fraud
As PINs and passwords continue to fail - and hacks and breaches climbing, more and more organisations are deploying biometrics to enable a simpler and safer way for customers to validate their identities and access services.
Just recently HSBC announced that its innovative voice biometrics system, VoiceID, has prevented over £300 million of customers’ money from falling into the hands of telephone fraudsters. HSBC customers using the technology 15 million times since it launched in 2016. Each month around 50 weeks or 8,400 hours of customers’ time is saved due to fewer resetting passwords or going through manual security.
This survey conveys how consumers are getting more comfortable with biometric identification – and adoption of Nuance technology specifically is growing at a rapid rate. Over 400 million consumers globally make more than eight billion successful authentications yearly already. Recent Nuance deployments include Santander, Lloyds Banking Group, Allied Irish Bank, Deutsche Telekom, Rakuten Life Insurance and RBS Group.
Survey methodology: Nuance Communications commissioned OnePoll to conduct an online survey of 1,000 adults in each of UK, US, Australia, Germany and Spain (5,000 participants in total) – with this media alert focused on the UK results. The survey was carried out between 9th – 18th April 2019.
About Nuance Communications, Inc.
Nuance Communications, Inc. (NASDAQ: NUAN) is the pioneer and leader in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze and respond to human language to increase productivity and amplify human intelligence. With decades of domain and artificial intelligence expertise, Nuance works with thousands of organizations – in global industries that include healthcare, telecommunications, automotive, financial services, and retail – to create stronger relationships and better experiences for their customers and workforce. For more information, please visit www.nuance.com.
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