Consumers Loosing Trust In Financial and E-commerce Industries

Callsign, a digital identity pioneer, revealed that the rise of scams is harming organizations’ reputations across the world. UK-based company Callsign has illustrated in its report that the rising scam crimes are threatening organizations’ image around the world. The global study of consumers has disclosed that merely receiving a scam message claiming to be from an official brand is enough for 49.8% of customers to lose confidence in the organization regardless of any real association with the message. 

Founded in 2012, Callsign is considered a digital identity giant that offers identity authorization and authentication, fraud protection, it also provides products and services to banks and other public and private sector organizations. Those organizations that mostly have been targeted by cyber fraudsters are the financial services and e-commerce industry. Consumers from various organizations have reportedly said that for all scam messages that they receive, around 59% claim to be from their bank, or a retailer (36%). 

Globally, by and large, individuals who receive fraud messages via various mediums of communication receive 1133 messages a year, of which 24% claim that they receive more fraud messages than friends and family. Around 41% admit that they don’t report files against fraud messages because mostly consumers underestimate the level of crime. 

Following the report, Stuart Dobbie, SVP, Innovation, Callsign said, “Fraud hides in volume and the rapid migration of the global population online in the last 18 months has led to the industrialization of scams. The consequence is fraudsters are using the same channels we’re using to authenticate genuine consumers, and this is harming organizations’ reputations with the decrease of trust in their brands, Organizations need to re-evaluate the communications channels they use to interact with customers to better establish trust. With fraudsters monopolizing open channels such as SMS and email, these channels cannot be relied upon to also authenticate identity…” 

“…Our research shows that over a third (38%) of consumers think identity is the problem and that people should prove who they are when signing up to use a platform to stop scammers. These consumer concerns emphasize organizations must wake up to the importance of digital identification.”