Cyber ​​Scams Eroding Trust in Digital Payments, Chubb Survey Finds

The survey, titled “The Impact of Cyber ​​Scams on Trust in Digital Payments,” highlights the growing concerns about online fraud and the subsequent changes in consumer behavior.

The survey, conducted in eight countries, found that 61% of respondents have altered their digital payment habits or reduced their use of payment platforms due to concerns about cyber scams. Despite the prevalence of these scams, 46% of respondents incorrectly believe that their payments are automatically protected.

The erosion of trust in digital payments poses a significant threat to the growth of the financial technology sector. As the survey data shows, 63% of respondents have either been a victim of a cyber scam themselves or know someone who has. The financial losses associated with these scams are compounded by the damage to trust, which can hinder the adoption of new digital payment methods.

The survey findings emphasize the crucial role of insurance in building trust and fostering the growth of the digital payments ecosystem. By offering protection against cyber scams, insurance can help to mitigate the risks associated with online transactions and encourage consumers to embrace digital payments.

“The future of digital payments is bright, and insurance will help play a crucial role in shaping its trajectory,” said Sean Ringsted, Chubb’s Chief Digital Business Officer. “At Chubb, we are committed to developing innovative insurance solutions that address the changing risks faced by individuals and businesses in the digital era. By fostering a mindset focused on awareness, vigilance and protection, we can ensure that the benefits of digital payments are accessible to all while mitigating the associated risks.”

Respondents were asked about nine different types of scams. They are most troubled by phishing/vishing and impersonation scams, as well as fake product or service purchases. Some 61% of respondents have changed their behavior or reduced use of certain digital payment platforms over concerns.

Key findings from Chubb’s Global Payments and Cyber ​​Scams survey include:

Certain demographic and geographic survey audience segments report higher rates of being a victim of cyber scams

• Women in Asia (33%).
• Younger people in the US (33%) and Asia (34%).
• At the market level, women in Thailand (39%), Philippines (38%), Indonesia (36%), and Brazil (32%).

Threats of being hacked looms large

• 53% voiced worry about their account being hacked.
• 48% were troubled about a potential data breach.
• 46% cited the possibility of being scammed as a barrier to trust.
• 37% indicated unease at their ability to recover their money, if scammed.

Trust levels vary among the responding audience

• 69% of women (vs. 65% of total respondents) completely trust digital payment technologies.
• 68% of younger users (18-34 years old) do not completely trust these technologies.
• 96% of those who make international transfers and 94% who make transfers weekly either somewhat, or completely trust digital technologies (vs. 91% globally) even though they are more susceptible to cyber scams.

Payment providers have an opportunity to close a trust gap

• 32% of respondents don’t trust the security of digital payment technologies.
• 36% don’t trust their customer support.
• 29% don’t trust platforms to protect their confidentiality.

Insurance could promote greater trust and adoption of digital payments

• 75% of respondents say transaction insurance would increase their trust.
• Impact of insurance is highest among consumers in Latin America – 84% would fully trust or trust payment technology much more if they had personal cyber-scam insurance, and 82% for payment protection insurance.
• Many respondents also see AI as a way to enhance security.

Methodology

Findings are based on a survey of 2,600 individuals in the US, Mexico, Brazil, Thailand, Singapore, Vietnam, Indonesia and the Philippines that explored the impact of cyberscams on levels of trust in digital payment technology. The survey was conducted by Opinium on behalf of Chubb in June 2024. The respondents were adults who had made digital money transfers through traditional banking apps / Fin Techs / Neo banks, or digital wire transfers in the last 12 months. The margin of error for the survey was +/- 2%.

Source: Chubb