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Consumers No Longer Believe Passwords Best for Authentication

As more consumers engage with businesses digitally to bank, shop or pay, online security remains the top concern. Survey insights from Experian’s annual Global Identity & Fraud Report found that since the pandemic, consumers have an increasing level of comfort and preference for physical and behavior-based – or invisible – methods of security. In fact, for the first time in four years, passwords did not earn a spot in the top three most secure methods for authenticating a customer’s identity.

Our research showed that the top three most preferred methods for authentication are:

  • Physical biometrics, such as facial recognition and fingerprints
  • Pin codes sent to mobile devices
  • Behavioral analytics, passively observed signals that require no effort from the consumer

“The top three methods consumers prefer actually give people the added security they desire when accessing their accounts,” said Eric Haller, Experian’s EVP and General Manager of Identity, Fraud and DataLabs. “Consumers want to be recognized digitally without extra steps to identify themselves, and they don’t want to remember yet another password. They are open to more practical solutions in today’s digital era.”

The pandemic caused a surge in digital activity, far greater than expected and many believe this trend is not going away. In fact, there has been a 20 percent increase in consumer online transaction activities since the COVID-19 pandemic began. Fraud rates are currently on the rise and consumers are still prioritizing a safe experience, with 55 percent citing security as the most important aspect of their online experience. In addition, 2 out of 3 businesses have increased concern about the overall level of fraud… Valdosta Daily Times

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