Fraud Concerns Determine who Canadians choose to do Business with, Reveals New TransUnion Survey

Consumers abandon online shopping carts (40%), financial product applications (38%) and websites (69%) if they lack confidence in data or fraud security protection

• 46% consider security of personal data the number one factor when deciding which online company to do business with – followed by quality of goods and services (22%)
• 48% have abandoned an online application or form for a financial or insurance product before completing it due to the cumbersome digital experience
• 69% would abandon a website due to fraud concerns
• 57% were targeted by a fraud scam between September to December 2022, of which 7% fell victim
• 57% are concerned about identity theft; 56% are concerned about credit card fraud
• 55% put a freeze on their credit report and 41% put an alert on their credit report when discovering they had become a victim of fraud

TORONTO, March 22, 2023 (GLOBE NEWSWIRE) -- In a recent survey, TransUnion (NYSE: TRU) explored the sentiment and behaviours of Canadians in relation to fraud concerns when engaging online with companies, financial service providers, and retailers. The analysis reveals a delicate balance between Canadians wanting to feel their personal and financial information is protected – but without compromising their digital experience. Nearly a third (30%) of Canadians surveyed have switched their online transactions to another website due to fraud or security concerns. In addition, 34%, said they are either extremely or very likely to switch companies to get a better digital experience.

“Our research points to the challenging dynamic that Canadian businesses, financial services providers, and retailers must navigate,” said Patrick Boudreau, head of identity management and fraud solutions at TransUnion Canada. “Concerns about fraud risks are top-of-mind for consumers when engaging online – and have significant influence on who and how they choose to transact with. At the same time, consumers have high expectations with the digital experience when engaging with companies and retailers online and can be quick to abandon their shopping cart or online applications if it feels too cumbersome. Canadian companies must walk the fine line of having all the necessary, rigorous risk mitigating process and tools in place to protect their customers, but without comprising their digital experience.”

Factors that Contribute to Canadians Abandoning Websites
Canadian consumers place significant focus on their digital experience when engaging online, with several factors causing them to not return to a website, including:

• Fraud concerns (69%)
• Asking too much information (57%)
• Process taking too long (46%) 
• Site layout being confusing (45%)
• Slow website (42%)
• Not being able to find what they were looking for (40%)
• Not receiving order confirmation post transaction (37%)
• Lack of familiarity with the company (34%)

Factors that Contribute to Canadians Abandoning their Shopping Cart
When online shopping, fraud and/or security concerns is one of the main reasons why Canadian consumers abandon their carts, as well as:

• Shipping costs (69%) 
• Cost of goods (43%)
• Fraud and/or security concerns (40%)
• Payment information not going through correctly (31%)
• Poor experience (24%)
• Too many security challenge steps (15%) 

Expectations when Deciding who to do Business with
Among the qualities or expectations that Canadians consider when deciding which online company to do business with, the following rank as the number one factor:

• Security of personal data (46%)
• Quality of goods or services (22%)
• Cost savings (20%)
• Good digital experience (6%)
• Delivery times (6%)
  

Considerations that Impact who Canadians choose to Transact with Online
When choosing who to transact with online, a number of features are considered important by Canadian consumers, including:

• Confidence that personal data will not be compromised (90%)
• Easy payment process (88%)
• Site navigation (87%)
• Ease of log-in authentication experience (86%)
• Ease of filling out forms or applications (86%)
• Ease of setting up a new account or ease of registration (85%)

Contributing Factors for Canadians to Abandon Online Applications
Nearly half (48%) of Canadians have abandoned an online application or form for a financial or insurance product before completing it. This includes the following reasons:

• Too much information was required (52%)
• Process was frustrating (48%)
• Took too much time to fill out the form (42%)
• Didn’t trust that my personal data would be secure (38%)
• Site was too slow (32%)
  

Canadians’ Actions when Falling Victim to Fraud
Half of Canadians (50%) say they were targeted by at least one fraud scam (via online, email, phone call or text message), but did not become a victim. This compares to 7% who were targeted and became a victim of fraud. The actions that Canadians took when they discovered they were a victim of fraud include:

• Placing a freeze on their credit (55%)
• Contacting impacted companies such as credit card, retailers, etc. (45%)
• Placing a fraud alert on their credit report (41%)
• Contacting a company that compiles and provides credit reports (22%)
• Calling the police (17%)
• Nothing (9%)

“While there is a lot of onus and responsibility on companies to protect their customers against fraud, Canadian consumers must also take active steps to help protect themselves. This includes continuing to be hyper-diligent to avoid succumbing to fraud attempts when receiving suspicious emails, texts or phone calls. If it feels suspicious, it likely is. Canadians must also be diligent about regularly checking their accounts for any suspicious activity, and through establishing and monitoring a credit report with fraud alert capabilities. Services like TransUnion’s credit monitoring and fraud alerts can play a significant role in helping protect Canadians from fraud risks,” Boudreau added.

About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company that makes trust possible in the modern economy. We do this by providing an actionable picture of each person so they can be reliably represented in the marketplace. As a result, businesses and consumers can transact with confidence and achieve great things. We call this Information for Good®. TransUnion provides solutions that help create economic opportunity, great experiences and personal empowerment for hundreds of millions of people in more than 30 countries. Our customers in Canada comprise some of the nation’s largest banks and card issuers, and TransUnion is a major credit reporting, fraud, and analytics solutions provider across the finance, retail, telecommunications, utilities, government and insurance sectors. Learn more at transunion.ca