94% of financial services providers think teaching fraud prevention in schools will better protect the UK public against the risks of fraud and financial crime, according to new research from LexisNexis Risk Solutions.
Over half (52%) of the 200 senior UK financial services firms polled are also concerned that the new generation of immersive online environments – metaverses – which will enable people to connect and transact like never before, will lead to a high risk of fraud and financial crime.
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People will no longer need to use passwords online by 2030
The survey findings follow the release of a new report from The Future Laboratory and LexisNexis Risk Solutions that predicts people will no longer need to use passwords online by 2030, while entering payment details and personal information during online transactions will also become a thing of the past.
Also read: Why A Strong Password Generator is Essential for Your Online Security.
This new frictionless way to navigate internet services and eCommerce – dubbed an Authentaverse – will see online activities including shopping, banking, applying for loans and insurance policies, and managing subscription services completed in seconds, with no clicks or forms to fill in. Instead, consumers will be automatically recognised and invisibly checked based on their human characteristics, such as how fast they type, the pressure their fingers exert on device screens, the tilt of their phone, and even their heart rate.
With such changes on the horizon, 88% of firms also said they believe that teaching online safety and digital literacy skills in school are now as important as maths and English. There is also strong industry support amongst financial services firms for the introduction of an official digital identity for each individual aged 16+ to be able to complete online transactions such as banking or applying for credit or insurance, with a majority saying the government should cover the costs of such a scheme.
Around half of those in favour of a digital identity scheme would like to see it used to encourage consumers to better manage and protect their own personal information.
Authentaverse is the world of the ‘smart ID wallet’
Digital money and identity author and expert, David Birch, explains:
“In contrast to the world of the super app in which you share your identity across many different services, an Authentaverse is the world of the ‘smart ID wallet’ where different services each with their own relationship identities share strong authentication. In other words, once you are logged in to the wallet on your phone with your face or fingerprint, your wallet can provide relevant and appropriate information to service providers without bothering you again.”
Survey findings also show that 82% of finance firms think the way people are checked, verified, and authenticated during online transactions needs to improve as the UK moves more towards more immersive, virtual, and augmented ways of using the internet – such as Web3 environments and metaverses.
Steve Elliot, Managing Director at LexisNexis Risk Solutions, added:
“In the next decade, remembering countless passwords, security codes and clicking a boxed-image featuring cars, traffic lights or buildings with steps will be confined to history. In an Authentaverse, consumers will enjoy quicker and hassle-free online transactions, but this requires strong, assured, and seamless digital trust to become a reality across the entire online ecosystem.
“People need to be able to trust organisations with their personal data and organisations need to be able to trust that consumers understand the role they play in protecting themselves, something that will require education. This mutual trust can then create greater knowledge of genuine customers and reduce the chances for criminal exploitation and fraud attacks.
“To achieve these high levels of mutual digital trust and confidence required to enable the next generation of online immersive experiences, businesses must evolve their identity and fraud checks through integrating both physical and digital identity attributes – common digital identifiers, and physical and digital biometrics – into a single, seamless, end-to-end verification and authentication process.”
In the absence of formal fraud prevention education in schools, organisations are prioritising digital trust as a strategically important factor. Survey data found that 76% of financial services firms are focusing on creating and strengthening levels of digital trust amongst customers, while 8-in-10 firms think a lack of knowledge amongst UK consumers impacts their willingness to share personal information that could otherwise help protect them.
Click here to read the full report, The Future of Digital Trust: The Authentaverse.
About the survey. Senior leaders from 200 UK financial services firms were surveyed by Sapio Research in May 2023.
Also read: Secure Bank Login: Protecting Your Financial Information.
ENDS
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based and analytics and decision tools for professional and business customers. For more information, please visit www.risk.lexisnexis.co.uk and www.relx.com.
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