Leading digital identity expert Intercede has revealed the results of its new research The Rise of the Identity Centric Economy; the company has found that 53% of UK consumers answered they would never use mobile banking services, while many said they avoid using any mobile financial services at all – including Paypal, money transfer apps and even shopping websites.
The survey of 2,000 UK consumers also found that half avoid money transfer apps, and almost a quarter (24%) would not feel safe shopping on their handsets. Furthermore, 75% of those concerned about data loss in the event their mobile device was stolen cited identity theft as their biggest worry.
Richard Parris, CEO of Intercede commented: “Nearly every week, we read about another high profile hacking story in the news. From major attacks such as Heartbleed to eBay’s recent data breach, it’s not surprising that consumers just don’t trust mobile security. This is throttling the mobile economy. But with the mobile device boom set to continue, it’s clear that security needs a radical revamp.”
In the wake of the Heartbleed security breach, only a minority of consumers (18%) still feel confident that they are secure. Concerns over mobile security and the safety of personal financial information were rife across all generations surveyed – overall 54% of consumers are worried about the level of security of their device. However, 18- to 24-year-olds are the most distrustful of mobile commerce and financial services:
· 62% said they would never use mobile banking compared to 53% overall.
· 60% said they would never make mobile payments compared to 50% overall.
· 52% said they would never use Paypal on their mobile compared to 43% overall.
· 87% cited identity theft as their biggest concern with data loss in the event that their phone was lost or stolen.
When asked why they were so concerned, respondents cited a lack of trust in current mobile login and authentication options, as well as worries about identity theft. One respondent said, “I must be confident only I will be able to log in and use them [apps] – at this stage, I just don’t trust apps, especially financial ones.” Others commented along the same vein: “I don’t want anyone to steal my phone and be able to access my money,” and “Apps are too hackable”.
“It’s clear that consumers are fast losing confidence in traditional authentication solutions – passwords are the weakest link and no longer fit for purpose,” continued Parris. “We need to regain consumer trust if the mobile economy is to really take off. We all already have multiple digital identities, from online banking to social networking to email and others, but these identities are becoming more and more prevalent, and how we secure them is a growing concern for consumers. The industry needs to sit up and listen – we need more sophisticated forms of trusted identity.”
The research also looked at what steps consumers are taking to protect their digital identities when they are using mobile applications. Worryingly, it found that many are leaving back doors open to hackers as they sign up for automatic log on and select ‘Remember me’ and ‘Keep me signed in’ options:
· Of consumers using social media on mobile devices, 75% are automatically logged on to their mobile accounts. This figure stands at 72% for e-mail users, 37% for customers of shopping sites such as Amazon, 23% for mobile banking, and 27% for PayPal.
· When asked if they were automatically logged in on more than one mobile device, the figures stood at 76% for users of social media, 45% for mobile banking, 46% for Amazon and shopping sites, and 54% for PayPal.
· 28% of consumers admit they know the log in details for a friend’s, family member’s or colleague’s mobile device.
· 60% rely on their memory to remember all passwords, suggesting they are choosing weak and easy to remember combinations.
All figures are based on an independent survey of 2,022 UK consumers across all adult age groups conducted by Atomik Research during June 2014.
Intercede is a software company specialising in identity and credential management with a global team of experts located in the US and UK.
Intercede’s MyID software enables organisations to create and use trusted digital identities for employees, citizens and machines. This allows secure access to services, facilities, information and networks.
MyID meets the highest government standards yet is simple enough to be deployed onto consumer devices such as smartphones and tablets. Critically, MyID provides an easy, convenient and secure alternative to passwords.
Millions of identities are managed using MyID and Intercede has provided identity verification and management services to global customers for more than 20 years. MyID is a commercial-off-the-shelf software product, designed and developed to be configurable so it can be embedded as the cornerstone of cyber security infrastructure for governments and corporations.
Customers trusting Intercede for secure digital identity include the US and UK governments and some of the world’s largest corporations, telecommunications providers and information technology partners.