Personalization continues to be a priority topic for companies across a wide variety of industries. Consumers want personalized experiences; they want better interactions with brands. But these experiences require data — and a lot of it. Building trust with consumers can take years, but only mere minute to destroy. Even a single breach or data leak — regardless of size — can cause significant harm to a company’s reputation and bottom line.
Consumers are increasingly aware of the risks of digital fraud and are quick to take action if they feel that their personal data has been compromised. But interestingly enough they don’t believe it is their responsibility to ensure protection. Consumers overwhelmingly agree that it is the responsibility of companies – and not individuals – to protect their digital privacy. This is a significant shift in perception, as consumers are increasingly looking to companies to provide secure and reliable digital experiences.
Last week, Telesign, a provider of digital identity and mobile identity solutions, released its 2023 Telesign Trust Index, highlighting the growing concerns of consumers about digital privacy and fraud. The report provides a wealth of insights into the current state of digital trust, covering everything from consumer perceptions to the impact of data breaches on brands. It also notes that businesses must take the responsibility of protecting their customers seriously if they want to continue to build trust. After spending time combing the report, here are a few key insights for businesses managing digital trust in an increasingly complex cybersecurity environment.
Digital Fraud Concerns are On the Rise
Another major finding of the report is that consumers fear digital fraud and believe that it is on the rise. This is not surprising given the increasing frequency and sophistication of digital attacks, with 30% of consumers surveyed reporting that they were victims of fraud in the past three years. Half of the survey respondents say that their level of fear regarding digital fraud has increased in the past two years. But what exactly does that entail? According to Telesign, digital fraud includes promo abuse, fake accounts, account hacks and even friction during the onboarding process. And I’m sure that we’ve all experienced or know someone who has experienced some of these in the past year even.
To say it’s frustrating is an understatement. That’s why it’s not surprising that consumers will hold companies accountable if they become victims of fraud. And accountability is already happening. For example, 43% of data breach victims personally stopped associating with the brand altogether, highlighting the importance of swift and effective communication and response in the event of a breach. Similarly, 44% of data breach victims are reported to have told friends and family not to associate with the brand, emphasizing the importance of building and maintaining trust with customers.
And if consumers think that businesses are responsible for protecting their privacy, then businesses need to implement measures to do so as well as take the time to educate consumers on what each layer of protection means. This also means that businesses must be prepared to take action in the event of a breach or attack, and have measures in place to mitigate the damage. Businesses that fail to do any of this are risking everything.
In the face of a crisis it’s always best to be open and communicative with your customers. There’s a saying in crisis PR that rings true here: “Be like Tylenol, not Toyota.”
Strategies for Protecting Digital Trust
One of the most effective ways to prevent fraud is through two-factor authentication (2FA) and multi-factor authentication (MFA). These technologies can significantly reduce the risk of account takeover and other types of fraud by requiring users to provide additional verification beyond just a username and password. This can include biometric data such as fingerprints or facial recognition, or a one-time code sent to a mobile device.
Another important strategy for preventing fraud is to implement real-time monitoring and analysis of user behavior. This can help detect unusual or suspicious activity and trigger alerts for further investigation. By monitoring user behavior in real-time, organizations can quickly detect and respond to potential fraud before it causes significant damage.
Privacy protections are also critical for building trust with customers. This includes being transparent about what data is being collected, how it is being used, and who has access to it. Organizations should also implement policies and procedures that limit access to sensitive data and ensure that it is stored securely.
Building Trust is Important
Overall, the 2023 Telesign Trust Index provides valuable insights into the current state of digital trust and the challenges that businesses face in building and maintaining trust with their customers. It also underscores the importance of building trust with customers in the digital age. However, the index itself is foundational to a more important theme for businesses as it pertains to prioritizing security to protect customer data and its broader reputation.
More than ever, businesses must take a proactive approach to security and work to protect their customers from fraud and data breaches, while also taking swift and effective action in the event of an incident. By doing so, they can build trust and loyalty with their customers and protect their reputation and bottom line. The businesses that win in the digital economy will be those that are the most trusted, so it is critical for organizations to take these issues seriously and take action to address them.