FICO Survey Reveals U.S. Consumers Need to Better Protect Themselves When Banking Online
Americans increase trust in security alternatives, 78 percent of Americans happy to have bank analyze behavioral biometrics
- The FICO Consumer Digital Banking study examines how Americans are protecting their financial information online as reliance on digital services grows
- Study found only 42 percent of Americans use separate passwords to access multiple accounts
- Only 23 percent of Americans use a password manager and 28 percent report abandoning an online purchase because they forgot login information
- Consumers are becoming more trusting of using physical and behavioral biometrics to secure their financial accounts, as 78 percent say they would be happy for their bank to analyze behavioral biometrics
FICO, a global leader in financial crime prevention, today released its Consumer Digital Banking study that found a large percentage of Americans currently do not take the necessary steps to protect their passwords and logins online. As consumers reliance on online services grows in response to COVID-19, the study examined the steps Americans are taking to protect their financial information online, as well as attitudes towards increased digital services and alternative security options such as behavioral biometrics.
The study found that a large percentage of Americans are not taking the necessary precautions to secure their information online. For example, only 42 percent are using separate passwords to access multiple accounts; 17 percent of respondents have between two to five passwords they reuse across accounts; and 4 percent use a single password across all accounts. Additionally, less than a quarter (23 percent) of respondents use an encrypted password manager which many consider best practice; 30 percent are using high risk strategies such as writing their passwords down in a notebook.
The study shows that consumers struggle with maintaining their current passwords as 28 percent reported abandoning an online purchase because they forgot login information, and 26 percent reported being unable to check an account balance. Forgotten usernames and passwords even affect new account openings, 13 percent said that it has stopped them from opening a new account with an existing provider.
This is a notable trend as consumers are more willing than ever to do business digitally. The study found that the majority of respondents would open a checking (52 percent) or mobile phone (64 percent) account online, while an overwhelming majority of respondents (82 percent) said they would open a credit card account online.
However, while there is significant room to improve how consumers protect their login credentials, the survey also found that Americans are becoming more trusting of using physical and behavioral biometrics to secure their financial accounts. The survey found that 78 percent of respondents said they would be happy for their bank to analyze behavioral biometrics – such as how you type – for security and 65 percent are happy to provide biometrics to their bank; while 60 percent are open to using fingerprint scans to secure their accounts.
Additionally, when logging into their mobile banking apps, respondents are now considering alternative security measures beyond the traditional username and password. The five most widely used security alternatives are:
- One-time passcode via SMS (53 percent)
- One-time passcode via email (43 percent)
- Fingerprint scan (39 percent)
- Facial Scan (24 percent)
- One-time passcode delivered and spoken to mobile phone (23 percent)
For more information on protecting your information online, check out the FICO Consumer Digital Banking study blogs on Customer Experience and Fraud as well as Security and Authentication in a Digital World.
Also read the FICO blog: 8 Tips for Avoiding COVID-19 Scams.
Results of an online, qualitative survey of 5,000 adults (over 18) across 10 countries carried out on behalf of FICO by an independent research company.
Source: FICO Press Release