RSA Security-Commissioned Survey Finds That Strong Authentication Can Increase
Customer Value, Loyalty, and Trust
NEW YORK, Aug. 18 /PRNewswire-FirstCall/ -- A survey released at a news
conference here today by RSA Security Inc. (Nasdaq: RSAS) showed that --
despite widespread fears of fraudulent activity and identity theft --
consumers are willing to increase the amount of personal business they do
online if their banks and other online service providers offer them strong
authentication.
With nearly 50% of survey respondents indicating that they would be more
or much more likely to switch to a competitive service provider if that
provider offered a strong authentication option and their current provider did
not, and with more than two-thirds willing to migrate more of their
transactions online if offered a hardware authenticator, consumers are laying
down a stark business challenge for organizations that don't invest in
appropriate identity protection for their customers.
The findings provide a telling counterpoint to a February 2005 RSA
Security study that showed security concerns were perpetuating consumer
reluctance to conduct personal business online; in that survey, nearly one-
fourth of respondents were reducing their online shopping and one-fifth
refused to work with their financial institutions over the Internet. Although
fears persist, this latest survey suggests that banks and other online service
providers still have an open window of opportunity to build more online trust
with consumers by providing strong authentication services that 'harden'
traditional -- and weak -- password-based protection.
"Just when consumers were beginning to understand the required elements of
secure electronic commerce -- such as lock icons on their browsers -- they
have been plunged into the realization that attackers are working hard to
extract and exploit personal information," said Trent Henry, Senior Analyst,
Burton Group. "Thus, simple measures are no longer enough to assuage their
fears. As a result, enterprises are looking for ways to improve the
technologies and processes used by customers in the online realm, both to
rebuild trust and to reduce the likelihood of identity theft and related
problems."
The survey results further suggest that the largest opportunity to build
trust among consumers will come as organizations find ways to make strong
authentication a familiar, convenient aspect of life online. When consumers
were exposed to different personal security solutions -- including strong
authentication, firewall, and anti-virus -- they exhibited similarly strong
intent to purchase each solution, suggesting that authentication has reached
the same stratum of necessity and familiarity as the two more clearly
mainstream technologies. More tellingly, though, consumers eagerly embraced
the notion of a networked authentication service that would allow them to use
a single authentication device to access multiple sites and accounts; 40
percent more consumers were very likely to subscribe to such a network than
were very likely to sign up for tokens that work on individual sites.
"Consumers clearly want to stay active online, but they have effectively
thrown down the gauntlet for the banks, brokerages, web email services,
auction sites, and myriad other businesses to whom they entrust their personal
information," said Chris Young, vice president of consumer authentication
services at RSA Security. "These account providers are therefore facing an
extraordinary business opportunity. By offering hardware authenticators, they
can up the volume of online transactions, thus increasing the lifetime value
of their customers while reducing transaction and retention costs. There are
also ample soft benefits, including greater customer satisfaction and trust
and confidence in the company brand."
The study, commissioned by RSA Security and conducted by LightSpeed
Research, was initiated to measure and understand consumer interest in online
fraud protection through strong authentication -- and their willingness to
adopt and pay for such a solution. More than 8,000 consumers fitting four
online consumer profiles -- online traders, online auction participants,
online bankers, and web portal/mail users -- were asked a variety of questions
to gauge how offering strong authentication in the form of individual hardware
devices or a networked service concept would affect their attitudes and
behaviors online. Benchmarks were provided by parallel queries into anti-virus
and firewall products.
The study also asked about general consumer perceptions of online security
threats. 82.7% of all respondents felt threatened or extremely threatened by
identity theft, and 83.2% felt threatened or extremely threatened by online
fraud. These fears extended at nearly identical levels across all types of
online account holders, though web mail and portal users showed the highest
percentage of extreme concern. With regard to specific accounts, respondents
were most concerned about fraudulent access to their online bank accounts.
"Given these security concerns even among the most ardent and
sophisticated of online consumers, delivering stronger forms of protection
against online account fraud must be a top priority," said Young. "Whether
it's building a service that offers a single authentication method across
multiple web accounts, or providing a choice of easy-to-use devices that match
a consumer's lifestyle and tech-savvy, businesses can no longer wait to
educate and protect consumers online."
Survey Methodology
The 26 question survey, into online security concerns and consumers'
willingness to adopt and pay for strong authentication, was conducted online
with 8,198 respondents from May 10-May 18, 2005, by LightSpeed Research.
***Note to media: A full copy of the survey results can be obtained by sending
a note to mbuckley@rsasecurity.com.
About RSA Security Inc.
RSA Security Inc. is the expert in protecting online identities and
digital assets. The inventor of core security technologies for the Internet,
the company leads the way in strong authentication and encryption, bringing
trust to millions of user identities and the transactions that they perform.
RSA Security's portfolio of award-winning identity & access management
solutions helps businesses to establish who's who online -- and what they can
do.
With a strong reputation built on a 20-year history of ingenuity,
leadership and proven technologies, we serve more than 18,000 customers around
the globe and interoperate with more than 1,000 technology and integration
partners. For more information, please visit http://www.rsasecurity.com
For more information:
Courtney Hohne Matt Buckley
OutCast Communications RSA Security Inc
(415) 392-8282 (781) 515-6212
courtney@outcastpr.com mbuckley@rsasecurity.com
SOURCE RSA Security Inc.
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Related links:
http://www.rsasecurity.com
CONTACT:
Courtney Hohne of OutCast Communications,
+1-415-392-8282, courtney@outcastpr.com; or Matt Buckley of RSA
Security Inc, +1-781-515-6212, mbuckley@rsasecurity.com
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