ATLANTA, June 5, 2018 – IDology, a leader in smart, multi-layered identity verification, today announced the findings of a new IDology Consumer Digital Identity Study on the impact of major data breaches and related headlines on consumer perceptions and preferences. In the wake of continued record-setting identity data breaches in 2017 and 2018, the study’s findings further demonstrate the need for businesses and financial institutions to understand changing consumer behaviors and shifts in cybercrime and the need for stronger, yet frictionless identity verification to enable the overall growth of digital business.
“We’ve reached a turning point in how consumers view and value identity verification,” said John Dancu, CEO at IDology. “With consumer demand for smooth and secure interactions, and the high expectation for businesses to protect consumer identities, the way businesses authenticate and verify customers has become a true competitive differentiator.”
Key consumer behavior trends and other major findings identified in the IDology Consumer Digital Identity Study include:
Consumer Concern Doesn’t Necessarily Translate to Action
The IDology study also reveals that despite increasing concerns, many consumers still use vulnerable password practices. Forty-four percent of those surveyed write passwords down while 73 percent seldom change them, heightening the need for businesses to take extra measures and evaluate multiple and diverse consumer attributes to safely verify customer identities. The good news is that many consumers are open to using more secure authentication methods for online accounts. Forty-five percent are extremely or very willing, with 92 percent saying they have some willingness to do so.
The study further revealed that many consumers place a higher responsibility to protect their identities on companies than on themselves, while still expecting a seamless experience. Sixty-seven percent strongly agree that it is a company’s responsibility to protect consumer data, compared to 59 percent who strongly agree that it’s a consumer’s personal responsibility. Further, the gap between consumer expectation and perception is prevalent, with half of the respondents being somewhat or not at all confident that businesses and government agencies can protect consumer identities.
“Digital identity verification is becoming more complex every day as the old, slow and static approaches become outmoded in today’s digital economy,” said Jim Van Dyke, founder and CEO of Futurion, a consulting firm that leverages decades of expertise to help leaders achieve transformative changes in areas including identity, virtual commerce, payments and financial services. “Consumers place a premium on speed and security, and are aware that their identities are less safe, but many haven’t taken the necessary actions to protect them, perhaps because they simply don’t know where to start. This is a need and an opportunity for businesses to rise to the challenge and help customers protect their identities.”
About the Study
The IDology Consumer Digital Identity Study reflects survey responses from 1,024 consumers, collected between March 7, 2018, and March 23, 2018. Survey respondents are representative of the online U.S. population, ages 18 and older, approximately 224 million people. Of this population, 85 percent own a smartphone, which translates to approximately 190.5 million people. The respondent panel was provided by research firm Qualtrics and research consultation and analysis on the survey questions were provided by Futurion.
Click here to access the IDology Consumer Digital Identity Study 2018.
Click here to access the Consumer Digital Identity infographic.
IDology will host an educational webinar on June 6, 2018 about the report, its findings and implications for businesses. To access the webinar, click here.
IDology provides real-time technology solutions that verify an individual’s identity and age for anyone conducting business in a consumer-not-present environment to help drive revenue, decrease costs, prevent fraud and meet compliance regulations. Founded in 2003, IDology offers a solution-driven approach to identity verification and fraud prevention that ultimately helps increase customer acquisition and improve the customer experience. IDology has developed an innovative and on-demand technology platform that allows customers to control the entire proofing process and provides the flexibility to make configuration changes that are deployed automatically—without having to rely on internal IT resources or IDology’s customer service so businesses can stay ahead of the fraud landscape while maintaining compliance. For more information, contact us.