One in five US consumers hit by identity fraud, seek security tips from billers

By Gloria Methri

Digital payment preferences are surging, according to the 2024 ACI Speedpay Pulse Report, published by ACI Worldwide. More than three-quarters of Americans now prefer to pay their bills digitally, especially Gen Z and Millennials, who show a significant inclination toward mobile payments. However, this increase in digital payments also brings about heightened risks – almost one in five consumers surveyed has fallen prey to online identity theft.

ACI’s annual research report examines consumer billing and payment trends. It provides billers with insights and practical advice on capitalizing on emerging trends and addressing threats impacting their business.

This year’s report, now in its seventh edition, includes new survey questions reflecting the rapid proliferation of digital communications and payment channels, shedding light on the concurrent increase in digital identity and payment fraud.

“The surge in digital payments adoption presents promising growth opportunities for billers, but the threats of online identity theft and other risks continue to burden consumers,” said Ron Shultz, General Manager of ACI Speedpay. “This creates a prime opportunity for billers to enhance their payment capabilities with advanced, AI-powered fraud management solutions and double down on fraud awareness education to create a differentiated and secure customer experience.”

Key Report Insights

77% of Americans now prefer to pay their bills digitally, with 26% displaying a preference for mobile over website. The shift to mobile is primarily driven by biller and bank mobile apps and digital wallets like Apple Pay and Google Pay.

18.7% have reported falling victim to online identity theft, with two in five reporting that an incident resulted in accounts being opened in their name.

More than one-third of consumers believe their data is less secure than it was five years ago, a figure that has increased steadily. While digital channels have proven convenient, identity fraud incidents spread through word of mouth and media coverage can continue to impact consumer trust.

29% of the consumers who rarely change passwords only do so when prompted by billers, highlighting the need for increased biller outreach and education.

Almost 50% of consumers surveyed do not believe that companies properly educate them on how to keep their data secure, an increase from 2023. Billers could respond to these findings by stepping up efforts to educate consumers about risks such as phishing, which is a significant on-ramp for online identity theft and account takeovers.

Consumers’ fear of scams is making debt collection harder; 34% of those surveyed said they avoid communications from debt collectors. Billers can replace debt collectors with virtual agents to create a secure, non-intrusive, and efficient debt collection platform.

According to the Federal Trade Commission (FTC), people reported losing $10 billion to scams in 2023. That’s $1 billion more than in 2022 and the highest ever reported to the commission. With biller fraud rapidly on the rise, billers must be prepared.