03/19/2012 : JACK UP I.D. CHECKS OR YOU MAY LOSE YOUR CUSTOMER
Experian research estimates millions lost through customers abandoning I.D. process
UK customers frustrated by old and inefficient identity checks on online gambling websites who abandoned the process out of pure frustration cost the online gambling sector in the region of GBP 14.4 million says global information services company Experian.
The results based on research Experian commissioned from the International Fraud Prevention Research Centre, revealed that one in five of those abandoned transactions were not taken elsewhere as frustrated consumers cancelled their sign-up attempt altogether.
Labour-intensive verification systems that require consumers to contact a call centre, submit physical documents or visit the store/branch to confirm identity were particularly at risk. These systems were typically stand alone programmes that drew on one single source of information and were unable to verify as many individuals electronically as more modern services.
Nick Mothershaw, UK Director of Identity & Fraud at Experian, comments: “The UK’s lost millions from inefficient online identity and security measures is a price that doesn’t have to be paid given that technology now enables incredibly robust identity checks to be undertaken almost instantaneously."
“Those using less efficient identity checks can benefit significantly by upgrading to newer tools, which enable improvements in security levels and faster, less onerous checks," Mothershaw added.
Professor Paul Barnes, Director of the International Fraud Prevention Research Centre, said: “Depending on the reason for the identity verification check, our tolerance during a transaction varies greatly – and can be as short as a 60 second window. With millions potentially being lost from the key industries in the UK, it is vital that this issue is addressed as soon as possible.”