Visa Stay Secure study reveals increasing consumer awareness on fraud prevention, with higher vigilance in digital payments across generations.
Last week, my colleagues and I attended the unveiling of the results of Visa’s Stay Secure study that sought to explore how consumers are embracing security measures in the era of digital payments. The Visa Stay Secure study which was conducted by Wakefield Research covered 5,800 adults across 17 markets in Africa, Eastern Europe, and the Middle East, revealing critical insights into fraud prevention trends. As technology advances, so do opportunities for fraudsters, and so do consumer habits as they protect themselves from scammers and stay more secure online.
Here are some key findings from the report.
Password resets are one common way for scammers to nab victims and consumers are now more wary of these requests. 72% of digital payment users take password reset requests with suspicion, while 60% avoid email requests to transfer money. 48% use text notifications of transactions, a number I wish was higher since real-time texts are a great measure for consumers to kick off recovery measures if their money is breached.
Consumer awareness is now higher, with 97% of respondents of the study saying that they are in a position to recognize fraud and scam attempts. This is up five points from 2023 when the statistics stood at 92%. Additionally, 97% of consumers say that they actively take precautions to safeguard digital transactions. This increase shows that the industry-led awareness campaigns towards the vigilance of digital payment users are working. I am proudly one of those users who keep strict tabs on money going out, take advantage of real-time text alerts, and generally keep up with industry news to be in the know about advancements, especially by scammers who are coming up with new ways all the time.
Whether or not we have ever fallen victim to scammers, almost each of us has come into contact with them either through sneaky emails, texts, and in Kenya, the famous Kamiti phone calls. 52% of consumers admit to having fallen into scammer traps, 16% of them more than once. Kenya leads in the number of people having been scam victims at 71% of the overall Sub-Saharan Africa demographic.
The study also looked at generational reactions to fraud and found that at 89% of digital payment users, GenZ lead the park in their likelihood to act on suspicious communication. This is slightly higher compared to millennials at 85%, GenX also at 85% and boomers at 80%. Some Gen Z consumers are, however, likely to be deceived by messages about security risks, such as stolen passwords or data breaches, with 40% indicating susceptibility.
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One of the most encouraging lessons from the research is the notable decline in the number of people responding to fraudulent messages. For instance, a low 33% could fall for scam emails offering financial opportunities or deals. This is one of the most common methods that scammers use, and it is good to see fewer people falling for it. 39% are prone to reacting to scam emails warning them about security threats like data breaches, a number that is also not too high.
The study also shows that more people are recognizing and appreciating security measures offered by payment platforms. 83% feel more secure when online payments require additional verification steps, such as entering a code sent via text or clicking a confirmation link.
We have clearly made quite a bit of progress in the digital payments ecosystem but we still have a long way to go since the ideal goal would be zero fraud. As the study highlights, many consumers still remain vulnerable to scams, with 39% still likely to be deceived by fraudulent emails, while 86% say they may engage with common scam tactics such as clicking on links or responding to messages. Though this marks a slight improvement from 90% in 2023, the risk remains significant.
We are still in good light though. Despite these challenges and risks highlighted in the Visa Stay Secure Study, digital payments are set to grow, with 90% of Kenyan consumers planning to increase their use of digital transactions in the next 12 months. This shows that the industry-led awareness campaigns and the growing vigilance of digital payment users are working.
As a leader in payment security, Visa continues to invest in innovations to enhance consumer protection and to counter numerous emerging fraud methods. Yes, a lot still needs to be done for full consumer awareness because cybercriminals are also innovating and improving their tactics but as we can see from the study, consumers, regulators and financial institutions are also on toes.
The improved level of assurance is being encouraged by the continued efforts by key players led by Visa in ongoing advancements in the implementation of consumer protection features and integrating new technologies such as AI-driven fraud detection, two-factor authentication, and real-time transaction alerts among others.
For more details, read the report here.
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