According to Telesign’s latest report, fraud poses significant risks to consumers and brands. The report highlights that 92% of consumers believe companies are responsible for safeguarding their digital privacy. However, 64% of global consumers and 58% of U.S. fraud victims report diminished trust in brands involved in data breaches.
In fact, 38% of American victims sever ties with the affected brand, 33% discourage others from engaging, and 20% voice their dissatisfaction on social media.
“In our more interconnected world, companies stand to gain by emphasizing trust and protection as foundational attributes of the customer experience. There is no longer an excuse for companies to not adopt extra security measures, such as multi-factor authentication, as an overwhelming majority of consumers welcome friction to protect against fraud and provide a sense of security,” said Christophe Van De Weyer, CEO of Telesign.
The report shows that fraud’s effects go beyond financial loss. Globally, 47% of fraud victims, such as stolen funds or compromised accounts, faced financial damage. The emotional toll is equally alarming, with 34% reporting mental or physical health impacts like stress and anxiety. Additionally, 21% experienced social consequences, and 20% faced concerns for their physical safety.
These challenges have lasting effects on digital behaviour. Among fraud victims, 65% globally are less likely to use social media, 64% reduce their use of payment services, and 56% scale back e-commerce activity. Nearly half (49%) described their most recent fraud incident as life-altering.
Globally, 80% of consumers and 77% of U.S. respondents support tools like multi-factor authentication (MFA), even if it introduces minor inconvenience. This signals that consumers are willing to accept “good friction” if it means greater protection against fraud.