Consumer faith in the security of passwords and PINS is plunging, with biometric voice verification now the preferred option.
Australian consumers are becoming increasingly con
cerned about issues of security and the methods or
ganisations use to verify their identity, according to a new
study by Sydney-based research company callcentres.net.
The 2009 Salmat VeCommerce Identity Verification Study
highlights consumers’ fears that traditional PINs and pass
words do not provide adequate protection of their personal
information, with 67 per cent reporting that they believe their
security details are at risk. Just over half (51 per cent) feel that
someone else may be able to accurately guess their pass
word, PIN or security details for interactions over the phone,
while 59 per cent say they believe someone else may actu
ally know these details.
When extrapolated to the wider Australian population, this
equates to about 44 million accounts held by Australians being
regarded as currently vulnerable.
“An increasing number of consumers in the Australian
market believe that conventional forms of identity verifica
tion, such as PINs and passwords, are becoming more vul
nerable to fraud, theft or misuse,” says Salmat VeCommerce
managing director Paul Magee. “These concerns are focused
around the ease with which the personal information can be
guessed, the possibility of information being stolen and
the use of technology to hack information.”
In the same study conducted in 2008, just 15 per cent of
Australian consumers considered the use of passwords in the
identification process as “very” or “extremely” vulnerable. In
2009, this figure jumped to just over one in four consumers
(27 per cent). The main reasons for fears about the security of
their passwords were that they can be easy to guess (51 per
cent), technology can be used to hack information (17 per
cent), and information can be stolen or call centre staff can
be dishonest (12 per cent).
About six in 10 respondents (57 per cent) reported that
they find having to remember multiple PINs and passwords
frustrating. Indeed, a significant proportion (41 per cent) had
to remember a password or PIN for more than five different
organisations. Perhaps unsurprisingly, therefore, over the past
12 months 78 per cent had forgotten a password or PIN on at
least one occasion and were required to divulge additional
personal information to confirm their identity.
The most-preferred method of verifying identity was bio
metric voice identification – a technology that enables a per
son’s identify to be authenticated using the unique charac
teristics of their voice. This was favoured by 45 per cent of
respondents, followed by PIN (21 per cent), password (18 per
cent) and personal details or history questions (16 per cent).
“More than ever, consumers are keen to ensure that their
personal information is protected,” Magee says. “If this means
the process is a little more complex, that is a sacrifice most
people are happy to wear. Their paramount concern is that
this information is dealt with in an appropriate way and that
they retain control over it as much as possible.
”The survey found that 67 per cent of Australians are con
cerned about fraud and identity theft (up from 63 per cent in
2008), while 62 per cent have become more careful about
sharing their personal information (up from 58 per cent in
2008). It also revealed that 56 per cent of people felt un
comfortable providing personal details over the phone to a
call centre representative.
An alarming 37 per cent of respondents had either expe
rienced identity fraud or theft themselves, or had a friend or
family member who had fallen victim to the crimes.
“The threat of identity theft and fraud has become a very
real concern,” Magee says. “Identify crime is one of the
fastest-growing offences across the globe, and Australia is
no exception.” R
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