[BreachExchange] Security Scorecard: Where Are Consumers Most Engaged?

[Audrey McNeil]

http://www.govinfosecurity.com/interviews/security-
scorecard-where-are-consumers-most-engaged-i-3412

How much time and effort will consumers put into protecting themselves from
ID theft and financial fraud? That was the question posed by Aite Group's
Julie Conroy in researching the new Global Security Engagement Scorecard.
And the answer might just surprise you.

For instance, would you have guessed that out of seven countries surveyed -
Australia, Brazil, Canada, India, South Africa, Spain and the United States
- Indian consumers are the most concerned about identity theft and payment
card fraud? And that No. 2 on the list for security engagement is South
Africa? Canada claims the bottom spot, by the way, with the U.S. weighing
in next-to-last.

What is comes down to, says Conroy, a research director at the consultancy,
is this: There is a direct correlation between the level of security
engagement and the extent to which consumers believe they have skin in the
game.

"As you look at countries like India and South Africa, where the concept of
zero-liability for fraud is not well established, we found dramatically
more engagement and willingness to engage in fraud prevention and
security," Conroy says in an interview with Information Security Media
Group. "At the end of the day, the consumer has a vested interest because
they have actual financial exposure in the case of fraud."

But in the U.S. and Canada, where consumers are legally protected from
feeling the full burden of fraud losses, the consumer engagement is
significantly lower, the study finds.

"In the U.S, market, it's a beautiful thing that we have Reg E and Reg Z
that protect us [from fraud losses]," Conroy says. "But at the same time,
it makes bringing a more interactive fraud prevention and security
experience very challenging. We don't have a lot of consumers who would be
willing to put a dongle into their computer and stick an EMV card into it
to do a [card not present] transaction. There just would not be that level
of tolerance because it would be a complete inconvenience."

Achieving a Balance

Organizations are going to continue to struggle with the question of
balancing security versus a frictionless customer experience, Conroy says.
But as both fraud and regulation evolve in different markets, she expects
the Global Security Engagement Scorecard will shift, too.

In this interview about her latest research (see audio link below photo),
Conroy discusses:

Key findings from the study;
The message to financial institutions and other organizations seeking to
balance security and convenience;
How regional regulatory changes might create shifts to the scorecard in
2017.

At Aite Group, Conroy covers fraud and data security issues. She has more
than a decade of hands-on product management experience, working with
financial institutions, payments processors and risk management companies,
including a number of years managing the product team at Early Warning
Services.
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