Indians are significantly more willing to take precautions against card fraud than other markets in Asia Pacific, according to the Visa Payment Card Security Study.
The Visa Payment Card Security study is an independent, in-depth consumer survey in markets across the Asia Pacific region, reviewing attitudes towards electronic payments security, actions that can be taken to enhance the security of electronic payments, and ways in which the industry can build on the safety of card payments thereby building trust in the electronic payments system.
Visa’s research in India revealed key consumer attitudes on card security:
- Consumers ranked payment card fraud as their 4th biggest financial security concern, with 46% of respondents ‘extremely’ or ‘very’ concerned about payment card fraud
- The highest level in the region of perceived vulnerability to payment card fraud – 29% feeling ‘extremely vulnerable’
- 73% say that media reporting of fraud is a cause for concern, a significantly higher response than that for personal experience
However, the study found that consumers in India are some of the most likely in the entire region to adopt payment card fraud solutions:
- 37% use different passwords/PINs for different purposes
- 51% (the highest level in the region) change PINs/passwords regularly – one of only two countries, along with Indonesia, who say they are more likely to do this as a prevention measure than anything else
- 41% change passwords once a month or more, far outstripping other markets
- When asked what actions they would take in the future to prevent against fraud, 67% said register to receive alerts by mobile phone, the second highest level in the region.
These unique insights into consumer attitude and behaviour demonstrate that when making electronic payments both in person and online, consumers in India take a highly proactive approach to enhance security.
Visa is committed to continuous innovation to ensure that card payments are safe and secure for cardholders and merchants alike. Collaborations across the industry including clients, merchants, regulators and governments is vital to shaping the future of electronic payments security, promoting initiatives such as the continuing migration to dynamic data authentication – chip cards and one-time passcodes (OTPs). Because of these efforts, global fraud rates are steady at a near all-time low of less than 0.06% – less than six cents in every 100 dollars.
Visa believes that one of the key initiatives that should be deployed by the industry to mitigate against card fraud is the use of dynamic data. Michael E. Smith, Head of Risk at Visa International visited Mumbai to discuss the issue with industry partners, including the shift towards dynamic data, chip on chip transactions (chip card and chip-enabled terminal at point of sale) and the use of ‘Verified by Visa’ with one-time passwords in online transactions.
Michael E. Smith, Head of Risk, Visa International, commented ahead of his visit: “Visa is an extremely proactive partner in the payment security debate worldwide. Research such as this into consumer behaviour in different markets gives us key data about attitudes towards risk and security as we take forward innovative solutions to enhance and increase security and trust all aspects of card payment transactions.”
By understanding consumer behaviour, the electronic payments industry can begin to enhance educational outreach on how consumers can help to protect themselves and their transactions from potential security risks.
Visa Payment Card Security Study:
- Carried out between August-October 2009
- Sample of 501 people surveyed online
- 18-65, male and female
- Representative of payment card population
- Respondents across Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad