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Press
Release
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Source:
Unisys Corporation
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Unisys
Research Shows Banks Face Potential Customer Exodus Over
Identity Theft
Tuesday
November 9,
8:30 am ET
Nationwide
Survey Shows One-Fifth of Americans Have Experienced Identity
Theft
BLUE
BELL
,
Pa.
--(BUSINESS WIRE)--
Nov. 9, 2004
--New research conducted by Unisys Corporation (NYSE:UIS
- News) shows
that
U.S.
banks are at risk of a customer exodus as a result of growing
consumer awareness of identity theft issues. The study found
that nearly half of
U.S.
households would be willing to switch their accounts to
financial institutions that offer stronger theft detection and
alert services.
Banks
face mounting pressures not only to improve identity theft
prevention, but also to help customers better understand how
they can combat fraud. While trust in banks remains high (84
percent of consumers believe their banks are doing all they can
to prevent identity theft), the Unisys research points to rising
fears: more than half of those surveyed are worried about the
safety of their money. The study found that one in five
U.S.
households - more than 21 million - have been directly affected
by identity theft.
"Banks
put themselves at a competitive disadvantage if they don't offer
and aggressively market their ID theft protection
services," said Gary Cawthorne, vice president and managing
partner of global banking at Unisys, which works with groups
such as the Financial Services Technology Consortium in
addressing identity theft. "Unisys research shows that
people clearly look to their banks for leadership on this
important issue. Unless banks take stronger actions, customer
trust - the life blood of every financial institution - will
seep away."
The
Unisys study found that nearly two-thirds of
U.S.
consumers believe it is possible for banks to prevent fraud
before it occurs, and more than three-quarters (78 percent)
believe it is a bank's responsibility to do so. Consumers,
however, are not enthusiastic about bearing the cost of identity
theft protection, with only 27 percent at least somewhat willing
to pay extra for these services.
Despite
consumers' strong beliefs in their financial institutions'
ability and responsibility to prevent fraud, a separate Unisys
study of branch service representatives in the 100 largest banks
in the U.S. raises questions about what protective measures
banks take, and how financial institutions communicate their
identity theft prevention to customers. While most branch
representatives say their banks do take actions to deter
identity theft, specific knowledge of these measures is unclear.
Only 14 percent say that their institution has a dedicated
department monitoring account activity, and 15 percent say their
bank does not do anything special to prevent theft. A mere one
percent report that their bank provides special identity theft
training for employees.
Identity
theft customer education offered by banks appears equally low.
Fewer than 10 percent of branch representatives mention having
special identity theft collateral to give to customers, and only
three percent cite any offers or promotions around identity
theft or security. When it comes to one of the simplest measures
of protection, only three percent suggested that the customer
contact a credit reporting agency.
"We've
found an interesting disconnect between consumers' apparent
trust in their banks and their banks' ability to communicate
their fraud protection policies," Cawthorne said.
"Unless banks better train their front line on identity
theft, they risk substantial damage to their reputation. People
often look first to their branch for advice, and banks are
missing out on a powerful tool for customer retention. As
financial institutions continue to invest in branches around the
world, they risk losing the trust customers put in their brand,
or worse, losing customers to financial institutions that more
holistically combat fraud."
About
the research
The
identity theft research, sponsored by Unisys and conducted by
market research firm International Communications Research
(ICR), included two companion surveys - a random telephone
poll of consumers and a "mystery shopper" study of
bank branch service representatives. The consumer survey
consisted of more than 1,000 completed interviews with a
nationally representative sample of adults age 18 and older. The
"mystery shopper" survey comprised new account inquiry
conversations with approximately 300 branch customer service
representatives among the 100 largest commercial banks in the
U.S.
The consumer survey questions were administered between July 28
and
August 1, 2004
, while the bank mystery shopper inquiries were conducted
between July 8 and
August 4, 2004
. Consumer survey data are weighted to the national household
population, based on the most recently available estimates from
the U.S. Census Bureau.
About
Unisys
Unisys
is a worldwide information technology services and solutions
company. Our people combine expertise in consulting, systems
integration, outsourcing, infrastructure and server technology
with precision thinking and relentless execution to help
clients, in more than 100 countries, quickly and efficiently
achieve competitive advantage. For more information, visit www.unisys.com.
About
International Communications Research
ICR
is a large and international full service marketing research
firm based in
Media
,
Pennsylvania
. Its professional staff has experience in unique consumer
populations, business-to-business, healthcare/pharmaceuticals,
technology, financial, advertising/PR, utilities, retail,
industrial and social science research. ICR is a member
of the Council of American Survey Research Organizations (CASRO),
and conducts projects in full compliance with CASRO professional
and ethical standards. The ICR Technology Group, which
conducted these studies, is a specialized team of researchers
and economists with experience in computer systems and
solutions, banking and financial services, and wire-based and
wireless communications and services.
RELEASE
NO.: 1109/8468
http://www.unisys.com/about__unisys/news_a_events/11098468.htm
Unisys
is a registered trademark of Unisys Corporation. All other
brands and products referenced herein are acknowledged to be
trademarks or registered trademarks of their respective holders.
Contact:
Unisys Corporation
Danielle D'Angelo, 914-262-9834
danielle.dangelo@unisys.com
or
Weber Shandwick
Rob Shapiro, 212-445-8310
rshapiro@webershandwick.com
Source:
Unisys Corporation
