Online fraud and identity theft remain of great concern to online users globally, as a new survey by Experian revealed that a quarter of consumers across the Asia Pacific (APAC) have been victims of online fraud.
However, despite growing concerns in the region, many people in the markets surveyed were not concerned about fraud and identity theft.
Based on Experian’s Global Identity & Fraud Report, consumers in China and India appeared to be especially vulnerable to online fraud — 29% of consumers in each market reported being victims of online fraud, slightly higher than the global average (23%).
The report also showed that the amount of concern about fraud and identity theft varies by country in APAC. Indian consumers (45%) are more concerned about fraud than Chinese consumers (9%), while Singaporean consumers (26%) are more concerned about fraud than those in China.
Consumers are also most vulnerable to fraud on social media sites and apps. Indonesia had the highest number of fraud incidents, where more than half (51%) of those surveyed reported experiencing them.
APAC consumers, like those around the world, expect companies to take steps to protect them from cyberattacks. Experian revealed that four out of five Asia Pacific consumers (80%) expect companies to take appropriate measures to protect them online.
Consumers increasingly recognize that companies must collect personal information to provide high-quality service. Still, they also expect companies to protect them from online threats that are too complex for consumers to handle.
Companies are responsible for protecting their customers and clients, but consumers should also take steps to protect themselves.
Impacts of fraud
Companies worldwide are increasingly concerned about the risk of fraud, with nearly half of all business respondents reporting that fraud was a deep concern. More than half of survey respondents from retail banking, credit card networks, and consumer lending specialists categorized their fraud concerns as high.
Experian found that fraud significantly affects both financial and reputational damage. 5% of APAC consumers reported at least one incident of fraud resulting in substantial financial or reputational damage. Meanwhile, 8% of respondents’ friends and family suffered significant financial losses due to fraud.
While companies are taking steps to protect against fraud, they still have a way to go to meet consumers' expectations. Only 26% of Singaporeans interviewed feel that businesses have met their expectations regarding a digital experience, and 59% still do not feel secure when transacting with a business online.
For consumers in the Asia-Pacific region, a seamless digital experience is a priority as they trust companies more if they can recognize them repeatedly without additional layers of verification. 94% of respondents from Malaysia — the highest in the APAC region — are extremely or somewhat trusting of companies that provide such a seamless customer journey by recognizing their online identity repeatedly.