SecurityBrief New Zealand logo
New Zealand's leading source of cybersecurity and cyber-attack news
Story image

New research reveals customer behaviour around fraud risks

By Catherine Knowles
Tue 4 May 2021
FYI, this story is more than a year old

The majority of efforts organisations make to educate customers about potential fraud risks are not working, according to new research from Callsign, the fraud protection and authorisation company.

While most respondents said they read fraud warning messages (86%); of those who did claim they had seen warnings, 58% said they had not done anything different as a result.

Furthermore, 13% stated that they do not look at them at all and just closed the window. Of those who read them, 28% said they are unable to recall what they say.

Further, 17% of consumers remember what the messages say but haven't subsequently changed their online behaviour.

While many people simply ignore fraud warnings, the study also found that 94% of consumers still expect proactivity from online companies or services they use when there is a risk of fraud, the researchers state.

In addition, consumers want to be warned about fraud when they are online: this includes when shopping (66%), online banking (64%) or using an online service (60%).

However, only 18% of those surveyed strongly agree when asked if the companies and services they use online do a good job protecting them against fraud.

The research finds that whilst consumers expressed a desire for organisations to keep them safe, trust to do so is low. As such, 76% of respondents said they would like the choice to opt in or out of being sent fraud warning messages if they had the choice.

In addition, of the 94% of respondents who expected online companies and services to be proactive when they are at risk of fraud; 41% wanted organisations to send a warning message and ask additional security questions before they could do anything else, to check that they fully understood the situation.

However, respondents are very specific when it comes to the different scenarios in which they would like to receive those warnings, such as if a website is insecure (52%), making an online payment or money transfer (42%), setting up a new account (38%) and logging onto an app or online (38%).

Callsign chief commercial officer Amir Nooriala says, "At first glance, our research suggests consumers want to make their own decisions around the risks they take, choosing to opt in or out of receiving fraud alerts, even ignoring them when they are delivered.

"However, there is a disconnect between the safety these warnings are supposed to bring and the poor user experience they cause - hence they are perceived as a nuisance."

Richard Shotton, co-author of the Callsign 'Wild, wild web - Preventing online scams' report and author of The Choice Factory, says, "A blanket messaging approach is not an effective way to educate and elicit the right behaviour or response from consumers. Banks and online services must consider the psychology around how and when individuals consume fraud messages.

"Timeliness is key, you must get the alert in front of people at the exact moment they are at risk of fraud. Without this, banks will continue to spend huge amounts of money on fraud prevention messaging that will never have an impact."

Callsign general manager Asia Pacific Namrata Jolly says,  "The research demonstrates that when organisations attempt to protect their customers through education during the user journey, if it's not delivered in a timely manner, people circumvent it to achieve the most frictionless experience.

"This presents an opportunity for organisations who do this well to win the digital trust of their customers.

"Passive behavioural authentication solutions and well-timed, effective messaging must go hand in hand to create the most trusted, secure and frictionless customer journey possible."

Related stories
Top stories
Story image
Cybersecurity
What every CISO must answer to enable a best-in-class security operations program
It has been widely reported recently that South Australian government employees have been the victims of a cyberattack.
Story image
Identity and Access Management
The post-pandemic workforce requires secure IAM capabilities
HID Global discusses what identity and access management means for organisations in today's convoluted digital world.
Story image
BYOD / Bring Your Own Device
How zero trust can lead the battle against ransomware
SecOps teams champion a zero trust strategy to support the fight against the escalating risk of cybercrime and help monitor threat actors across a network.
Story image
Microsoft
Elevation of Privilege the top 2021 Microsoft vulnerability
BeyondTrust has released its 2022 Microsoft Vulnerabilities Report, finding that Elevation of Privilege is the top vulnerability category for the second consecutive year.
Story image
Amazon Web Services / AWS
RedShield leverages AWS to scale cybersecurity services
"Working with AWS gives RedShield the ability to mitigate significant application layer DDoS attacks, helping leaders adopt best practices and security architectures."
Story image
Data Protection
Barracuda launches new capabilities for API Protection
"Every business needs this type of critical protection against API vulnerabilities and automated bot attacks," Barracuda says.
Story image
Managed service provider
Barracuda MSP Day 2022 highlights MSP opportunities
Barracuda Networks has released a report showing global services-related MSP revenue is set to increase by more than a third in 2022 compared to 2021.
Story image
Training
Trojan cyber attacks hitting SMBs harder than ever - Kaspersky
In 2022 the number of Trojan-PSW detections increased by almost a quarter compared to the same period in 2021 to reach 4,003,323.
Story image
Cybersecurity
More than 40% of banks worried about cloud security - report
Publicis Sapient's new report finds security and the lack of cloud skills and internal understanding of business benefits are big obstacles for banks moving to the cloud.
Story image
Remote Working
Successful digital transformation in the hybrid work era is about embracing shifting goalposts
As organisations embraced remote working, many discovered they lacked the infrastructure needed to support history’s first global load test of remote work capabilities.
Story image
Cybersecurity
Asia Pacific plagued by sophisticated bad bots - report
The three most common bot attacks were account takeover, content or price scraping, and scalping to obtain limited-availability items.
Story image
SaaS
Rubrik Security Cloud marks 'next frontier' in cybersecurity
"The next frontier in cybersecurity pairs the investments in infrastructure security with data security giving companies security from the point of data."
Story image
Kubernetes
Sysdig unveils new Kubernetes troubleshooting and cloud innovations
Sysdig has introduced two new innovations that look to help bolster cloud services and simplify Kubernetes troubleshooting.
Story image
Employment
Tech job moves - Forcepoint, Malwarebytes, SolarWinds & VMware
We round up all job appointments from May 13-20, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Ransomware
Employees on the frontline of cyber defense - report
In the first quarter of 2022, employees found themselves more than ever at the frontline of cyber defense, according to a new report from Kroll. 
Story image
Training
Infosec unveils role-guided cybersecurity training roadmaps
Infosec Skills Roles maps hands-on training and certifications to the 12 most in-demand cybersecurity roles to maximise training efficiency.
Story image
ChildFund
ChildFund launches new campaign to protect children online
ChildFund says WEB Safe & Wise aims to protect children from sexual exploitation and abuse online while also empowering them to become digitally savvy. 
Story image
Surveillance
i-PRO releases smallest AI-based surveillance camera on the market
The new i-PRO mini network camera is now available, with a pocket-sized form factor and full AI analytics functionality.
Darktrace
Threat actors are exploiting weaknesses in interconnected IT/OT ecosystems. Darktrace illuminates your entire business and takes targeted action to stop emerging attacks.
Link image
Story image
Malware
New vulnerabilities found in Nuspire’s Q1 2022 Threat Report
“Threat actors are quickly adjusting their tactics and these exploits tend to get industry attention, but the threat posed by older and attacks still persists."
Story image
Apricorn
Data backup plans inadequate, data still at risk - study
The Apricorn 2022 Global IT Security Survey revealed that while the majority organisations have data backup plans in place, data for many are at risk.
Story image
Silver Peak
The path to an adaptive, modern network
Managing and securing the network looks different than it did just two years ago—especially given that most of these networks are made up of multi-generations of infrastructure stitched together over time.
Story image
Malware
'Alarming' rise in ransomware threats - Verizon report
As criminals look to leverage increasingly sophisticated forms of malware, it is ransomware that continues to prove particularly successful.
Story image
Cybersecurity
Noname Security partners with Netpoleon to target API issues
Specialist API security firm Noname Security has appointed Netpoleon as its distributor in Australia and New Zealand.
Story image
Phishing
Vishing attacks reach all time high - Agari and PhishLabs
"Hybrid vishing campaigns continue to generate stunning numbers, representing 26.1% of total share in volume so far in 2022."
Story image
Cloud Security
Aqua Security createa unified scanner for cloud native security
“By integrating more cloud native scanning targets into Trivy, such as Kubernetes, we are simplifying cloud native security."
Story image
Check Point
Check Point and CCTV expert join forces to boost protection
The partnership will involve Check Point Quantum IoT Protect Nano Agent being embedded in Provision-ISR’s CCTV cameras for on-device runtime protection.
Story image
Migration
Let’s clear the cloud visibility haze with app awareness
Increasingly, organisations are heading for the cloud, initiating new born-in-the-cloud architectures and migrating existing applications via ‘lift and shift’ or refactoring.
Booster
Booster Innovation Fund. A fund of Kiwi ingenuity – for Kiwi investors.
Link image
Story image
Cyber attacks
Devastating cyber attacks expected to hit energy sector
Energy executives anticipate life, property, and environment-compromising cyber attacks on the sector within the next two years.
Story image
Customer experience
Gartner recognises Okta for abilities in Access Management
Okta has announced it has been recognised as a Customers' Choice for the fourth time in a row in the Gartner Peer Insights "Voice of the Customer" report.
Story image
Ransomware
CERT NZ releases first Cyber Security Insights for 2022
CERT NZ has released Quarter One: Cyber Security Insights 2022, which offers an overview of reports about cybersecurity incidents affecting New Zealanders.
Story image
Phishing
WhatsApp and QR codes the next scam threat - report
KnowBe4 has warned it expects to see an increase in QR Codes and the WhatsApp chat platform being used for phishing and other scams. 
Story image
Data Protection
Information management capabilities to meet privacy requirements
Organisations with customers or operations across more than one country face a spate of new and proposed privacy and data protection laws.
Story image
Ransomware
APAC ranks third-highest region targeted by ransomware
Asia Pacific has ranked the third-highest region globally to be targeted by ransomware, according to cybersecurity firm Group-IB.
Story image
SaaS
Maintaining secure systems with expectations of flexible work
Most office workers feel they've proved they can work successfully from home, and as much as employers try, things aren't going back to the way they were anytime soon.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Microsoft
Global cybersecurity insurance market worth $11.5b this year
Future Market Insights finds the cybersecurity insurance market is expected to reach USD$11.5 billion in 2022, growing to $61.2 billion in 10 years.
Story image
Cybersecurity
Comcast to use ThreatQuotient for cybersecurity operations
Comcast, the parent company of NBC Universal and SKY Group, has chosen ThreatQ Platform and ThreatQ Investigations to meet their cybersecurity needs.
Story image
New Relic
New Relic launches vulnerability management platform
New Relic has introduced New Relic Vulnerability Management to help organisations find and address security risks faster and with greater precision.
Story image
Cybersecurity
Accenture - a collective security approach a driving factor for cyber resilience
With the approaching Davos World Economic Forum upon us, it is even more imperative to discuss the impact of cybersecurity on business operations leading into the future.
Story image
Ransomware
APAC organisations fail to disclose ransomware breaches
85% of organisations in APAC were breached by ransomware at least once in the past five years, but only 28% publicly disclosed the incident.
Story image
Ponemon Institute
Email revealed to be riskiest channel for data loss
More than half (60%) of organisations experienced data loss or exfiltration caused by an employee mistake on email in the last 12 months.
Story image
Cybersecurity
Cybersecurity prompts upgrade for 1.3 billion electricity meters
ABI Research finds Advanced Metering Infrastructure (AMI) and cybersecurity concerns are prompting the upgrade of 1.3 billion electricity meters by 2027.