Consumer Acceptance of Biometrics Opens Path to Confront Threat of AI Digital Fraud

Rhea-AI Summary

Mitek (MITK) sponsored an IDC InfoBrief revealing that using biometrics for online account access leads to higher consumer satisfaction and reduces online fraud. Digital payment fraud losses are projected to surpass $362 billion globally between 2023 and 2028. 83% of organizations have invested in improving consumer authentication technology, and 60% are in the process of enabling multi-layered authentication. Consumers are unsatisfied with traditional username/password processes, and 77% of those using biometrics on their smartphone or tablet are satisfied with biometric identity authentication.

People who use biometrics to access online accounts more satisfied than those who don’t, new research says

SAN DIEGO--(BUSINESS WIRE)-- A new International Data Corporation (IDC) InfoBrief, sponsored by Mitek (NASDAQ: MITK), Biometrics Key to Customer Satisfaction and Combating AI-Generated Fraud*, was released today. The research finds that people who use biometrics to access online accounts register higher rates of satisfaction than those who don’t. Consumer acceptance of biometrics when used for identity protection means companies can confidently deploy multi-layered biometric authentication, the most powerful technology available to combat online fraud, while also increasing consumer satisfaction.

Digital payment fraud losses are projected to surpass $362 billion globally between 2023 and 2028, according to Juniper Research. Amidst the rising threat of AI-powered fraud, new data from IDC reveals that 83 percent of organizations surveyed said they have made investments in improving consumer authentication technology and processes. Additionally, 60 percent of company respondents said they are in the process of enabling multi-layered authentication while another one in three said they plan to deploy multi-layered authentication “in the next year or two.”

These more secure systems use multiple layers of biometrics, such as facial recognition combined with voice and fingerprint or other biometric, to authenticate a person’s identity. In addition to offering greater security, they have little to no maintenance overhead and eliminate today’s unpopular password-based authentication systems.

Key findings from IDC’s research into the consumer perspective:

• 77 percent of consumer respondents who use biometrics on their smartphone or tablet said they are satisfied with the use of biometric identity authentication.
• 25 percent of consumers surveyed said they have had one of their online accounts hacked or taken over by online criminals.
• More than a third said they had switched to another company because of an unsatisfactory resolution to an online account hacking incident.
• Consumers in general are unsatisfied with current username/password processes: one in three said that having to remember multiple usernames and passwords is their biggest authentication headache.

“Companies have dual responsibilities in the face of mounting online threats: reduce corporate risk and keep their customers safe and secure,” said IDC Associate Research Director Mark Child. “Our research confirms that consumers are ready to support – and in many cases prefer – biometric identity authentication systems when they enhance online safety.”

“Today’s commonly used authentication methods have become easier to circumvent and no longer provide adequate security for users,” said Adam Bacia, Senior Director of Product at Mitek. “We have to confront emerging threats – everything from voice clones and facial image spoofing to emerging AI-generated fraud – by using tools and technology capable of instantly spotting and blocking these threats.”

Access the IDC InfoBrief here. To learn more about the types of multimodal biometric identity authentication systems that offer enterprise-grade security, visit Mitek MiPass.

*Source: doc #EUR251382023, December 2023

About Mitek

Mitek (NASDAQ: MITK) is a global leader in digital access, founded to bridge the physical and digital worlds. Mitek’s advanced identity verification technologies and global platform make digital access faster and more secure than ever, providing companies new levels of control, deployment ease and operation, while protecting the entire customer journey. Trusted by 99% of U.S. banks for mobile check deposits and 7,900 of the world’s largest organizations, Mitek helps companies reduce risk and meet regulatory requirements. Learn more at www.miteksystems.com.

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Media inquiries:

Angela Romei, Mitek Senior Director

pr@miteksystems.com

Source: Mitek

FAQ

How does using biometrics for online account access impact consumer satisfaction?

Using biometrics for online account access leads to higher consumer satisfaction.

What are the projected digital payment fraud losses globally between 2023 and 2028?

Digital payment fraud losses are projected to surpass $362 billion globally between 2023 and 2028.

What percentage of organizations have invested in improving consumer authentication technology?

83% of organizations have invested in improving consumer authentication technology.

What percentage of organizations are in the process of enabling multi-layered authentication?

60% of organizations are in the process of enabling multi-layered authentication.

What percentage of consumers using biometrics on their smartphone or tablet are satisfied with biometric identity authentication?

77% of consumers using biometrics on their smartphone or tablet are satisfied with biometric identity authentication.