- Two thirds of people that don’t bank online cite concerns over trust (65%) and security (64%). Only one per cent said it was because they rarely use the internet, a major behavioural study* commissioned by the Keep Me Posted campaign has revealed
- Online banking fraud losses rose by 50 per cent to £60 million in 2014, according to figures released todayThe study also revealed the most important reason for receiving a paper bank statement is to check for fraudulent or incorrect transactions (77 per cent)
- Partners in the Keep Me Posted campaign believe that it is every consumer’s right to choose, without disadvantage, how they are contacted by banks and other service providers
Trust and security are the top concerns that stop people who use the internet from banking online, a major behavioural study commissioned by the Keep Me Posted campaign has revealed.
The ‘Managing Money Online’study conducted by London Economics found that around two thirds of people (65 per cent) who don’t bank online cited concerns over trust. This was followed by security concerns (64 per cent). Only one per cent said it was because they rarely use the internet.
These trust and security concerns appear to be justified with new figures released today by Financial Fraud Action UK demonstrating that banking fraud is still on the rise in the UK. Fraud losses on UK cards** totalled £479 million in 2014, a six per cent rise on the previous year. Online banking fraud losses rose to £60 million, up 50 per cent from £40 million in 2013. However, recent figures from the City of London Police suggest the scale of the problem may even exceed these figures with 85 per cent of fraud and cybercrime left unreported.***
The research also found that even those that are registered to bank onlineadmitted that postal bills and statements are better in terms of being able to trust that the information is both genuine and accurate (25%, compared to 16% who said electronic is better) and secure (22%, compared to 15% who said electronic is better).
The survey of 2,399 consumers also revealed the most important reason for receiving a paper bank statement is to check for fraudulent or incorrect transactions. Three quarters of respondents (77%) rated this as ‘important’ or ‘very important’.
Partners in the Keep Me Posted campaign believe that it is every consumer’s right to choose, without disadvantage, how they are contacted by banks and other service providers.
Judith Donovan CBE,Chair of the Keep Me Posted campaign “Many banks and service providers want to encourage people to manage their accounts online and will stress convenience and speed as selling points. However, the fact remains that online fraud is increasing year-on-year with many criminals having a demonstrably greater grasp on technology than many of the institutions they are targeting. This is particularly concerning for older or vulnerable people who might not be as capable when using technology – how can these people be sure that they are not being targeted by criminals? It is important that people have a choice about how they receive information from their financial services provider so that they manage their accounts as effectively as possible.”
Aside from the dangers of criminal activity, the study found that the majority of people are able to manage their own money more effectively when using paper bills and statements. The results of the study showed that 75% of those who received a paper statement were able to correctly assess the financial health**** of their account compared to 48% who received an online statement.
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* Research taken from Keep Me Posted’s Behavioural economics study. Research involving 2,399 respondents carried out by YouGov and London Economics on behalf of Keep Me Posted in December 2014
** Financial Fraud Action UK, 20 March 2015 (INSERT LINK TO PRESS RELEASE)
*** London Assembly, ‘Tightening the net: The Metropolitan Police Service’s response to online theft and fraud’, March 2015 (http://www.london.gov.uk/sites/default/files/Tightening%20the%20net.pdf)
****A healthy statement was defined to respondents as one that had a high amount of money coming in relative to the amount of money going out with evidence of good financial management such as no late payment fees, an unhealthy statement would be the opposite.
The experiment compared the responses and attitudes of two groups of people in a test scenario – one group was sent information by post and another group received the same information online.
The Full report can be found on the Keep Me Posted website: www.keepmeposteduk.com