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Europeans fear increase in financial fraud, reports Unisys
April 2009 by Unisys Security Index
As the global economy continues to create worldwide instability and fear over people’s jobs and financial well-being, the majority of European consumers feel the recession is also leaving them more exposed to fraud. The results from the fourth Unisys Security Index reveal that nearly two thirds (61 per cent) of consumers believe they are more at risk from identity theft and related crimes such as credit card fraud, with a quarter believing the crisis heightens this risk substantially.
In Spain, 83 per cent of consumers fear that financial fraud will increase; while in the UK 72 per cent expressed the same concerns. In Germany and Belgium, more than half of all consumers, 56 per cent and 63 per cent respectively, fear financial related crime. Conversely however, just a third of Dutch consumers feel there is a link between the recession and increased fraud, indicating a more resilient attitude in the Netherlands.
Conducted in March 2009, the Unisys Security Index is a bi-annual Global research project which assesses the opinions of more than 8500 people across nine countries worldwide. The latest Security Index sits at 127 for Europe compared to 122 in September 2008, indicating a moderate rise in security concerns overall .
The index confirms a reduction of consumer confidence around financial security – with the score increasing ten points from 132 to 142 in the last six months. This area is the number one security concern across Europe with the data showing the lowest level of concern being around Internet security (118).
“The fourth Security Index shows that the economic crisis is clearly not only impacting the way consumers feel about their financial security, but that they might also be stung further through credit card fraud and identity theft,” said Dino Gelmetti, Global Industries, Continental Europe, Unisys. “However, while European consumers believe there is a link between the recession and a rise in financial fraud, they are containing their overall fears in the face of the crisis. Whether perceived or real, consumers, businesses and governments all need to take greater precautions in the areas of ID theft and financial fraud and organisations should prioritise the way they are addressing consumer sentiment in this area.”
Key findings reveal:
European diversity
Now in its fourth wave, the Unisys Security Index provides a view of consumer security confidence across Europe. Data from the current wave reveals a slight increase in fears in each of the four areas covered: financial, national, Internet and personal security – a trend reflective of the uncertainty we are facing globally.
Security confidence across the five European countries surveyed varies significantly. Germany remains the most fearful nation with an overall Index score of 169, up nine points from September 2008. Similarly in Spain fears have increased with the Index score rising to 151 from 138 six months ago. It is in the area of Internet security that Spaniards expressed the most marked increase with the Index score increasing by 22 points to 113
Consumers in the UK are most confident in the areas of Internet and national security, although confidence has declined in these areas in the last six months. Overall, with an Index score of 135, British consumers appear only moderately concerned about security.
It is in Belgium and The Netherlands where consumers are most confident. The Index score in Belgium remains at 96 – with the only rise occurring in the area of financial security (114 from 110 in September 2008). In The Netherlands the overall Index score has actually decreased by one point to 86 – with confidence in the areas of personal and national security increasing in the last six months.
Financial fear factor continues to dominate in Europe
Index scores in the area of financial security range from 99 in The Netherlands to 177 in Germany, although in all countries it is the most prevalent fear. Three out of every five consumers express serious fears about the risk of others using their credit, debit or bank account details without their consent. In addition to this, consumers in both Germany and Spain demonstrated a ten per cent increase in their fears about meeting their financial obligations when compared to the last index carried out six months ago – a fact that clearly reflects the growing impact of the recession on consumer attitudes.
Europeans split over confidence in personal security
Personal security is the second highest concern for European consumers with an Index score of 128 – an increase of four points from September 2008. Just over half of consumers are concerned about others misusing personal information, however once again the variation in consumer attitudes is apparent at a country level. In The Netherlands and Belgium, under half of consumers see this as a serious concern, while in Spain, the UK and Germany these fears reside in the majority (60 per cent; 65 per cent and 81 per cent).
Resilience in the area of national security
There has been a slight rise in the National Security Index score from 118 to 120, but as with the previous surveys, consumers across Europe continue to show resilience in this area. These fears are worst in Spain with 58 per cent of those questioned seeing this as a serious concern – something that can be attributed to the ongoing conflict with terrorist groups such as ETA.
Internet Security
Although Internet security is the area with the lowest levels of concern, the overall Index score of 118 is an increase of seven points from the last survey in September 2008. Prior to that, Internet Security concerns had been steadily declining. This resurgence of anxiety could be qualified by the increasing number of consumers who shop online, particularly in a time of global recession.
