Report claims ‘clueless consumers’ need better payments and fraud education

fraud

Lack of understanding among consumers can impact on the uptake of new technologies.

A new report from Aite Group has revealed how concerns about and experiences of fraud impact on consumer behaviour, making them less accepting of new electronic payments technologies and causing them to change financial institutions.

Based on a survey conducted by ACI Worldwide among consumers in 17 countries, the Global Fraud and Clueless Consumers impact report identified confusion among consumers about even simple payment issues, such as what the difference is between debit and credit cards and when PINs may be used. The approaching rollout of EMV in several countries is likely to add to this confusion, which will benefit fraudsters ready to take advantage of uncertainty and periods of change.

Aite Group’s conclusion is that card issuers and financial institutions need to focus on educating consumers about payments and reassuring them about risk. Greater understanding among customers, it suggests, will lead to higher uptake of online payments thus increasing card revenue.

Shirley Inscoe, senior analyst in retail banking at Aite Group commented:

 “If financial institutions are actually providing education, it is not being done in a manner that the data is understood and retained, which is leading to ‘clueless consumers’. As a result, consumers’ perceptions may be distorted, resulting in confusion, dissatisfaction with the financial institution or even a change in financial institution provider.” 

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