|Customer security big opportunity for financial institutions|
July 19, 2011
Data shows that financial institutions are in an enviable position to sell security solutions to consumers to combat fraud, as almost four out of ten consumers have no identity protection services, according to the 2011 Second Annual Antivirus, Browser, and Mobile Security report recently issued by Javelin Strategy & Research.
The report, based on data from almost 25,000 consumers, presents year-to-year comparisons of consumer behaviors, evaluations of antivirus and mobile and browser security products, and highlights revenue opportunities for financial institutions.
Opportunities were found among consumer groups where the levels of internet device ownership are high and adoption rates of antivirus software are low. Javelin found that, overall, while consumers are using internet devices at exploding rates—smartphone ownership alone increased 42% from 2010 to 2011—slightly more than half of consumers do not have any antivirus software.
“We found that consumers actually prefer obtaining identity protection services from their FIs to any other source—including independent security companies and credit bureaus—by a more than a 2-to-1 ratio,” said James Van Dyke, Javelin’s president and founder.
Consumers indicate a range of benefits associated with a more secure online experience. They have a more positive perception of their FI, are less likely to leave the FI after an incident of fraud, and will make more purchases online, Javelin said.
“Fraud is becoming increasingly sophisticated. Fraudsters are able to consolidate information leaks, such as those from the 2011 data breaches that compromised more than 180 million records, into automated spear phishing attacks,” cautioned Philip Blank, managing director, security, risk and fraud at Javelin. “New technologies also present new security challenges. Our recommendations will mitigate the risks to both FIs and consumers, as well as pave the way for FIs to offer revenue-generating security-related software for PCs, browsers, and mobile devices.”
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