Consumers lack faith in security of passwords

Auckland, 6 May 2009.  New Zealand consumers are very concerned about issues of security and the methods organisations use to verify their identity, according to a new study by research company, callcentres.net.

The 2009 Salmat VeCommerce Identity Verification Study highlights consumers’ fears that traditional PINs and passwords do not provide adequate protection of their personal information, with 68 per cent reporting that they believe their security details are at risk.
 
Just over half (56 per cent) felt that someone else may be able to accurately guess their password, PIN or security details for interactions over the phone, while 54 per cent said they believe someone else may actually know these details.
 
Online surveys were completed by 215 New Zealanders for the study, which aimed to understand consumers’ attitudes towards processes used by organisations to verify identity.

“An increasing number of consumers in the New Zealand market believe that conventional forms of identity verification, such as PINs and passwords, are becoming more vulnerable to fraud, theft or misuse,” said Alan Alcock, General Manager New Zealand at Salmat VeCommerce. “These concerns are focused around the ease with which the personal information can be guessed, the possibility of information being stolen and the use of technology to hack information.”
 
The use of passwords as a form of identification is seen by New Zealand consumers as one of the most high-risk processes, with one in four rating it as ‘very’ or ‘extremely’ vulnerable.
 
The main reasons for consumers’ fears about the security of their passwords were that they can be easy to guess (53 per cent), technology can be used to hack information (13 per cent) and they are not secure enough (12 per cent).
 
Just under half of the respondents (49 per cent) reported that they find having to remember multiple PINs and passwords frustrating. The average New Zealand consumer has to remember a password or PIN for four different organisations.

Over the past 12 months, 73 per cent had forgotten a password or PIN on at least one occasion and were required to divulge additional personal information to confirm their identity.

The most preferred method of verifying identity was biometric voice identification, a technology that enables a person’s identity to be authenticated using the unique characteristics of their voice. This was favoured by 52 per cent of respondents, followed by PIN (25 per cent), password (14 per cent) and personal details/history questions (10 per cent).

The survey indicated that consumers would also be prepared to deal with more complex processes as a tradeoff for increased levels of security, with seven in 10 preferring organisations to use ‘fairly’ or ‘very’ complex security processes.

“More than ever, consumers are keen to ensure that their personal information is protected,” said Alcock. “If this means the process is a little more complex, that is a sacrifice that most people are happy to wear. Their paramount concern is that this information is dealt with in an appropriate way and that they retain control over it as much as possible.”

The study also found that 60 per cent of New Zealanders are concerned about fraud and identity theft.  The same number reported that they had become more careful about sharing their personal information over the past couple of years.

Meanwhile, 54 per cent said they felt uncomfortable providing personal details over the phone to a call centre representative.

An alarming one in five New Zealand consumers had either experienced identity fraud or theft themselves, or had a friend or family member who had fallen victim to these crimes.

“The threat of identity theft and fraud has become a very real concern,” added Alcock.  “Identity crime is one of the fastest growing offences across the globe, and New Zealand is no exception.”

About Salmat VeCommerce
Salmat VeCommerce, a Salmat company (ASX:SLM), assists organisations deliver exceptional customer interactions. This is achieved through a detailed analysis of existing customer processes and the development and provision of applications that utilise speech recognition, voice biometrics and other related interaction technologies.
 
Salmat VeCommerce has developed voice self-service solutions since 1998 and today is one of the most experienced and successful application developers and systems integrators in the industry focusing on automated and scalable voice enabled caller identification and verification (ID&V) solutions.
 
The company’s focus on research and development and provision of best-of-breed business solutions delivery has rewarded the organisation with a number of industry innovations, including: the first project to develop an Australia/New Zealand phonetic language model, the world’s first natural language wagering solution launched commercially, and the first voice self-service real-time credit card bill payment system.
 
Customers include Australian Health Management, National Australia Bank, Pizza Hut, Standard Life, Suncorp, St George Bank, Tabcorp, TelstraClear and the Inland Revenue Department (New Zealand).  The company has offices in Australia, New Zealand, the UK and US.  www.vecommerce.com
 
About callcentres.net
callcentres.net Pty Ltd is a research, analyst and online publishing business dedicated to the Asia Pacific contact centre and outsourcing industries, based in Sydney and Singapore.  www.callcentres.net

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