SAN JOSE, Calif. — The new FICO Consumer Digital Banking has found a majority of Americans continue to put themselves at risk when it comes to protecting their financial information, with fewer than half using separate passwords to access multiple accounts, among other findings.
Consumers also indicated they are becoming more trusting of using physical and behavioral biometrics to secure their financial accounts, with 78% saying they would be happy for their bank to analyze behavioral biometrics
Among the findings:
- Just 42% of Americans use separate passwords to access multiple accounts; 17% of respondents have between two to five passwords they reuse across accounts; and 4% use a single password across all accounts.
- Just 23% of respondents use an encrypted password manager, which many consider best practice
- 30% are using high risk strategies such as writing their passwords down in a notebook
More Phishing Attempts
“We’re seeing more cyber criminals targeting consumers with COVID-19 related phishing and social engineering,” said Liz Lasher, vice president of fraud portfolio marketing at FICO. “Because of the current situation, many consumers are only able to access their finances digitally, so it’s vital to remain vigilant against such scams and take the right precautions to protect themselves digitally.”
FICO said the study shows consumers struggle with maintaining their current passwords, with 28% reporting they have abandoned an online purchase because they forgot login information, and 26% reporting being unable to check an account balance.
Forgotten usernames and passwords even affect new account openings, with 13% saying that it has stopped them from opening a new account with an existing provider, the FICO survey found.
A ‘Notable Trend’
“This is a notable trend as consumers are more willing than ever to do business digitally,” FICO said. “The study found that the majority of respondents would open a checking (52%) or mobile phone (64%) account online, while an overwhelming majority of respondents (82%) said they would open a credit card account online.”
However, FICO noted that while there is significant room to improve how consumers protect their login credentials, the survey also found that Americans are becoming more trusting of using physical and behavioral biometrics to secure their financial accounts. The survey found 78% of respondents said they would be happy for their bank to analyze behavioral biometrics - such as how they type - for security; 65% are happy to provide biometrics to their bank, while 60% are open to using fingerprint scans to secure their accounts.
Security Alternatives
Additionally, when logging into their mobile banking apps, respondents are now considering alternative security measures beyond the traditional username and password.
FICO said The five most widely used security alternatives are:
- One-time passcode via SMS (53%)
- One-time passcode via email (43%)
- Fingerprint scan (39%)
- Facial Scan (24%)
- One-time passcode delivered and spoken to mobile phone (23%)