KUALA LUMPUR: One in eight Malaysian consumers suspect their identity is stolen, while one in 14 knows it is, according to a Fico survey.
Fico said its identity proofing and digital banking survey revealed that identity theft was a tangible threat for people in Malaysia.
The survey was conducted in January by an independent research company involving 1,000 Malaysian adults.
Fico said there was a good understanding of why identity proofing was an integral part of the banking experience in Malaysia, while acknowledging level of risk from identity theft.
The survey was also conducted along with 13,000 consumers in the United States, thevUnited Kingdom, Canada, South Africa, Australia, New Zealand, Indonesia, the Philippines, Thailand, Vietnam, Brazil, Colombia and Mexico.
Fico said collectively about 7.0 per cent of the respondents knew their identity had been stolen and used by a fraudster to open an account, while a further 12 per cent believe it was likely to have happened.
The survey showed a growing acceptance of security measures as online account opening surges
"Just over three-quarters (76 per cent) of respondents recognised that identity proofing happens for their protection. Most people are not cynical about the reasons their identity is confirmed.
"While a large number (55 per cent) recognise there is an element of regulation driving providers to carry out more checks, only 13 per cent think this is done to enable financial institutions to sell more," said Fico.
A majority (59 per cent) of Malay respondents did see identity proofing as a way for banks to protect themselves, while 46 per cent regard it as a tool to prevent money laundering.
"Most Malaysians are open to providing their bank with a biometric such as a facial scan, fingerprint, or voiceprint to secure their accounts."
The survey revealed that once they understand why it was necessary, 50 per cent were happy to provide their biometrics.
Only 7.0 per cent say that banks should never capture biometrics, while 14 per cent were willing but unhappy to provide them.
"In a lot of Asian countries, fingerprinting, identity cards and authentication apps have been commonplace for some time," said Fico lead for fraud, security and compliance in Asia Pacific Subhashish Bose.
He said there was less concern around privacy and the survey showed there was broad acceptance of the benefits that biometrics deliver when it comes to securing bank accounts and stopping money laundering.
The survey revealed that 42 per cent of Malaysian consumers prefer to open bank accounts digitally and 48 per cent prefer branches.
However, over the last year, thanks to the pandemic, 57 per cent of Malaysian are more likely to open an account digitally than a year ago; while those who attend branches often do so for social and technical reasons.
"Digital account opening has been available in Malaysia for some time, it just remained unused by some segments of the market who either hadn't discovered it yet or weren't willing to trust it," said Bose.
He said this hasd created a belief that accessing a branch offers a more informed and secure account opening process.
As attitudes change and more people experience the benefits of digital banking, Fico said there would be further opportunity for banks who adopt multichannel strategies and can engender trust in new channels.
Malaysians who open an account digitally, prefer to carry out the process entirely in their chosen channel whether it be smartphone or website.
If customers are asked to move out of channel to prove their identities, many of them will abandon the application, either giving up on opening an account completely (5.0 to 7.0 per cent) or by going to a competitor (11 to 12 per cent).
Of those who do not immediately abandon, up to an additional 25 per cent will delay the process.