Mobile phone text messaging solutions can provide the basis for a higher level of protection from online fraud and a second-factor authentication channel for secure financial transactions, according to a new study.
Online fraud continues to grow and is a major issue for e-retailers and consumers, resulting in more than $3 billion in annual losses; consumer comfort with text messaging now has moved past the early adopter phase with more than 80% having sent or received text messages, concludes the Online Shopper Mobile Phone Study. The study is based on a survey conducted in July by market research firm the Vantedge Group; it includes responses from 100 online shoppers between ages 18 and 65.
Purchase protection and security continue to be leading issues for consumers when shopping and conducting financial transactions online, the study says. It finds that among online shoppers:
- 94% are concerned about protecting personal information when shopping online.
- 91% indicate value in being informed when credit cards are used online.
- 67% would value receiving text message alerts as an additional layer of online protection.
- 45% say their decision to buy would be positively affected by e-commerce sites that use a text message alerting service.
- 50% would pay a monthly fee to receive text message alerts while an equal percentage expect such a service to be provided for free.
“Couple the high level of text messaging familiarity and use with the fact that 86% of these consumers say they always have their mobile phones with them and you have the makings for a powerful new set of protection services for online merchants and their always-on consumers,” contends Greg Rable, CEO of FactorTrust, an Internet and mobile phone security technology vendor that sponsored the study. “These numbers show the confidence online consumers and merchants have been searching for in order to move forward with implementing safer ways to shop online.”