CHICAGO–Nearly one in four (24%) Americans have been victimized by fraud or identity theft while using gig economy platforms, like delivery and ride-sharing apps, which is more than double the rate they experienced elsewhere, according to a new study.
The findings were released by TransUnion as part of a comprehensive 2023 U.S. Gig Economy Report, which studies the attitudes, behaviors and experiences of Americans participating in the gig economy as workers, consumers or both.
“The gig economy provides extraordinary convenience and flexibility for consumers and workers, and it all hinges on trust,” said Tracey Lazos, senior director of TransUnion’s gig economy business. “It is imperative for platforms to provide robust protections that can validate identity without adding unnecessary friction.”
When asked which security steps they expect platforms to leverage, consumers and workers showed similar preferences for measures such as one-time passcodes and biometric identity verifications, like facial recognition and fingerprint scanning, as seen in the chart below.
‘Opportunity to Communicate’
TransUnion stated the need for robust security measures was underscored by responses to questions about why people stop doing gig work. While the most common reasons were financially related; for example, not making enough money or finding full-time employment, more than a quarter of workers (26%) cited safety concerns, the company observed, adding that number was elevated among Baby Boomers, at 35%.
“Gig platforms have an opportunity to communicate their commitment to protecting workers, especially to older generations,” said Lazos. “While Baby Boomers only comprise 7% of the current gig workforce, our survey found that workers of that generation plan to double their participation in the near future.”
A ’Surprising Mix’
According to TransUnion, in the “surprising mix” in the gig workforce
of Americans who indicated that they are currently engaged in the gig economy, 37% use gig platforms solely as a source of income, while 39% act only as consumers of gig services, and the remaining 23% participate as both workers and consumers.
While low-income earners (less than $50,000 per year) had the highest representation among workers, more than half (58%) of high-income earners (more than $100,000 per year) who participated in the gig economy did so as workers. What’s more, nearly one-third (29%) of that group cited gig work as their primary source of income.
Diversity of Communities
“Our findings highlighted the diversity of the gig economy communities,” concluded Lazos. “While participants may have different reasons for choosing gig work and services, everyone comes with the same expectation of having a positive experience.”
The online survey of 971 adults was conducted in July 2023, by TransUnion in partnership with third-party research provider, Toluna. Survey participants included adults 18 years of age and older residing in the United States- who participate in the gig economy as a source of income or as a consumer of gig services. Participants included current, past, and future gig economy workers and consumers.
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