34% of Indians are most concerned about being
tricked into making payment to a criminal
(NYSE: FICO)
Highlights
- Payment Fraud is the top financial crime concern for 34% of
Indians
- Identity theft worries persist, with 37% believing they have or
might have been victims
- Real-time payment scams are on the rise, with 64% receiving
scam communications
- Fraud protection is paramount, with ease of use and good fraud
protection ranking as top considerations for selecting financial
services providers
FICO, a leading global analytics software firm, today unveiled
its latest global consumer fraud research, shedding light on
Indians' ongoing apprehension regarding real-time payment scams
amid the growing adoption of new, convenient, and fast payment
channels. According to the study, the primary worry for Indians
remains the risk of being tricked into sending money to criminals
(34%), which exposes individuals to instant, irrevocable losses
rarely eligible for reimbursement.
Additionally, concerns about identity theft persist, with 20% of
Indians citing it as their top financial crime concern. This type
of fraud carries additional risks beyond financial loss, such as
compromised credit scores and the challenging process of restoring
financial integrity.
More information:
https://www.fico.com/en/latest-thinking/ebook/consumer-survey-2023-digital-banking-customer-preferences-and-fraud-controls
“India’s adoption of real-time payments continues to accelerate,
with 98% of adults having sent a real-time payment and 82%
expecting to increase their use over the next year,” said C K
Leo, FICO's lead for fraud, security and financial crime in Asia
Pacific. “As the adoption of real-time payments surges, driven
by platforms like Paytm, Google Pay and PhonePe, we're witnessing a
transformative shift in financial behaviour. Yet, amidst this rapid
digitisation comes an urgent need for heightened vigilance against
fraudsters lurking in the digital realm.”
Real-Time Payment Scams: A Growing Concern
As the incidence of scams continues to rise, FICO’s research
from last year uncovered a troubling trend related to authorised
push payment (APP) fraud and real-time payments in India. A
concerning 64% of Indians have received unsolicited text messages,
emails, phone calls, or other outreach that they believed to be
part of a scam, while 57% of respondents stated that their friends
or family members had been victims of a scam.
Shockingly, 45% of respondents admitted to sending real-time
payments for investments, goods, or services they never received.
Additionally, 36% of those who made scam payments through real-time
payments lost up to INR 50,000, while 8% experienced losses of up
to INR 6 lakhs. Despite these alarming figures, only 43% reported
actual or suspected losses to their banks.
"Banks now face a crucial moment to invest in cutting-edge
solutions to tackle the surge in scams, particularly with the swift
uptake of real-time payments in the Asia-Pacific financial
landscape,” said Leo. “The irrevocable nature of these
transactions has led to new criminal threats. By integrating
scam-specific analysis and scoring into transactions, along with
robust decision-making capabilities across the customer journey,
banks can pre-emptively detect and thwart scam payments, sparing
customers from financial harm. Furthermore, while some consumers
may ignore warnings, the majority will heed alerts and refrain from
making real-time payments if alerted to potential scams."
Awareness of identity theft in India among the highest in
Asia
Concerningly, the rate of respondents who reported their stolen
identity being used to open a financial account was considerably
higher in India than in the other countries surveyed. 13% of
Indians stated that their identity had been stolen and used to open
an account by a fraudster, while this was reported by only 5% of
Filipinos and 3% of Indonesians. Given India’s adult population,
this 13% translates to over 165 million individuals.
However, despite widespread concern about identity theft, there
remains a dissonance between perception and reality among Indians.
About 33% believe it unlikely they've been a victim, while 13% see
it as possible, and 23% are confident their identity remains
untouched.
“While some may downplay the risk of identity theft in India,
millions remain vulnerable,” added Leo. “This underscores
the need for heightened awareness and proactive measures. By
breaking down silos and integrating identity verification and fraud
detection processes, we can streamline applications and bolster
trust in legitimate customers.”
Indians Prioritise Good Fraud Protection
When asked about the most important considerations respondents
have when they select a new provider for a financial account, good
fraud protection and ease of use were the two most important. These
were both considered significantly more important than good
customer service, strong anti-money laundering policies, sound
green/environmental policies, ethical use of customer data,
behaving fairly, and good value for money.
The survey was conducted in November 2023 by an independent
research company adhering to research industry standards. 1,000
Indian adults were surveyed, along with approximately 12,000 other
consumers in Canada, U.S., Brazil, Colombia, Mexico, The
Philippines, Indonesia, Malaysia, Singapore, Thailand, U.K. and
Spain.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240520218713/en/
Lizzy Li RICE for FICO +65 9034 7768 lizzy.li@ricecomms.com
Saxon Shirley FICO +65 9171 0965 saxonshirley@fico.com
Fair Isaac (NYSE:FICO)
Historical Stock Chart
From Aug 2024 to Sep 2024
Fair Isaac (NYSE:FICO)
Historical Stock Chart
From Sep 2023 to Sep 2024