November 1, 2004
Despite widespread fear of identity theft, American consumers surrender too much personal information over the phone and Web, according to a recent survey.
"While consumers have learned not to divulge information such as their Social Security number and debit card number over the phone or on the Web, our survey indicates that they are still nave and share significant amounts of information from the contents of their wallet -- putting them at greater risk for identity theft and phishing," said Peter Reid, portfolio strategist for EDS Security and Privacy Services.
The survey was commissioned by EDS and the International Association of Privacy Professionals (IAPP).
Key findings show that more than 70 percent of consumers will reveal information, such as their name, address, postal code, phone number, account number or give the answer to a security question to an unsolicited call or email. Other findings in the survey include:
• A majority of consumers (61 percent) do not want to be forced to change passwords, a common procedure mandated to enhance security;
• Over half of respondents (57 percent) do not want their accounts locked down after three failed attempts to provide identification verification information;
• Two-thirds of consumers (66 percent) believe it is worse to endure the inconvenience of being denied access due to a systems glitch than it is to be given access without proving their identity.
Reid said consumers continue to repeat the mistakes that resulted in nearly 10 million identity theft victims in the United States last year as reported by the Federal Trade Commission.
"These findings are a clear indication that consumers are not willing to spend time with identification verification processes that serve to protect their personal information and their identity," said Reid.
"However, the survey results also indicate that consumers want identification methods to be just as secure as they are convenient and that, perhaps, is one of the reasons why consumers are now more open to alternative identification verification methods."
The survey also gauged consumer interest toward innovative methods of identification verification, such as biometrics and a single secure and private identification credential. Results suggest that a majority of consumers are open to alternative methods of identification management solutions:
• More than 69 percent are open to the idea of using biometrics for identity management. Only 12 percent said no to biometrics, while 19 percent are unsure;
• 88 percent of respondents who are willing to accept biometric identification methods are in favor of this technology because it is convenient and does not require them to remember passwords;
• 85 percent chose finger prints and 84 percent chose voice recognition as preferred methods of biometric identification for convenience and speed;
• More than 75 percent of respondents believe that one secure and private identification credential, issued by a trusted organization, would make it much more convenient to prove their identity to various organizations.
"This survey confirms the fact that, in spite of issues like identity theft, consumers value convenience over privacy, presaging a real need for technologies and techniques that offer superior privacy protection while enhancing the customer experience," said Trevor Hughes, executive director, IAPP. "Clearly, the development and adoption of technologies such as biometrics and identity management solutions are vital to meeting our responsibilities to the consumer."
While consumers may be divulging important personal information and demand convenient security, they clearly value the protection of their personal information.
Survey findings indicate 85 percent of consumers believe their access should be denied if their identity cannot be verified. In addition, 84 percent want to be notified when an organization determines that an unauthorized person has been given access to their information.
