Consumers Don’t Trust Online Passwords after Data Breaches
The data breaches and security hacks over the last year and a half have taken a toll on consumers’ trust. A new Consumer Account Security Report from TeleSign reveals 70% of consumers lack confidence in the protection their passwords provide online.
According to the report, 80% of consumers worry about online security as a whole, while 72% of consumers are searching for additional security services to protect their accounts. In just the past year, 40% of respondents reported they had encountered a security incident. 70% of them had to change their passwords as a result of the incident.
Many websites are turning to two-factor authentication (2FA) programs to alleviate security concerns for consumers. Surprisingly, 61% of respondents said they had not taken advantage of this opportunity for any of their online accounts. 2FA was most popular on financial sites, with 56% of Americans and 75% of people in the UK using it for credit cards, online bank accounts, PayPal, and similar financial institutions. On average, each consumer in the survey had three online financial accounts.
Unfortunately, consumers in the United States were more likely to have suffered from a security incident than consumers in the UK (50% vs. 30%), as well as being more likely to worry about online security (84% vs. 76%). Although the United States is making a shift to smartchip credit cards that are standard in Europe, the transition to better card technology may not lower the risk of online security hacks.