Cyber scams fuel distrust in digital payments, Chubb report finds

Chubb’s newly released global survey, “The Impact of Cyber Scams on Trust in Digital Payments,” underscores the growing influence of cyber fraud on consumer behaviour and trust in digital payment platforms. As cyber breaches continue to escalate, the survey reveals a significant shift in how consumers interact with digital payment methods, highlighting widespread misconceptions regarding cyber protections and a pressing need for improved security measures.

According to the survey, which covered eight countries including the US, Mexico, Brazil, and several nations across Southeast Asia, 61% of respondents have either reduced their usage or changed their behaviour regarding digital payment platforms due to concerns over cyber scams. The survey also found that nearly half (46%) of those surveyed wrongly assume that their digital payments are fully protected, exposing a critical gap in consumer understanding of cybersecurity risks.

Sean Ringsted, Chief Digital Business Officer at Chubb, highlighted the critical role insurance plays in the future of digital payments. “The future of digital payments is bright, and insurance will help play a crucial role in shaping its trajectory. At Chubb, we are committed to developing innovative insurance solutions that address the changing risks faced by individuals and businesses in the digital era. By fostering a mindset focused on awareness, vigilance, and protection, we can ensure that the benefits of digital payments are accessible to all while mitigating the associated risks,” Ringsted stated.

Cyber scams, particularly phishing, impersonation, and fraudulent product purchases, are among the top concerns for consumers. Over 63% of respondents have either fallen victim to cyber scams or know someone who has, further eroding trust in digital payment platforms. Notably, women and younger consumers across the surveyed countries were more likely to report being targeted by such scams. For example, 33% of women in Asia reported being victims of cyber scams, with the numbers even higher in countries such as Thailand and the Philippines.

The survey also underscores a growing consumer desire for stronger safety nets, with 75% of respondents stating that transaction insurance would increase their trust in digital payment platforms. This demand is particularly high in Latin America, where 84% of respondents indicated they would trust digital payment technologies more if they had personal cyber-scam insurance.

The detailed key findings from Chubb’s Global Payments and Cyber Scams survey include:

Certain demographic and geographic segments report higher rates of being a victim of cyber scams:

• Women in Asia (33%)
• Younger people in the US (33%) and Asia (34%)
• At the market level, women in Thailand (39%), the Philippines (38%), Indonesia (36%), and Brazil (32%)

Threats of being hacked loom large:

• 53% voiced worry about their account being hacked
• 48% were troubled about a potential data breach
• 46% cited the possibility of being scammed as a barrier to trust
• 37% indicated unease at their ability to recover their money, if scammed

Trust levels vary amongst the respondent audience:

• 69% of women (vs. 65% of total respondents) completely trust digital payment technologies
• 68% of younger users (18-34 years old) do not completely trust these technologies
• 96% of those who make international transfers and 94% who make transfers weekly either somewhat or completely trust digital technologies (vs. 91% globally) even though they are more susceptible to cyber scams

Payment providers have an opportunity to close a trust gap:

• 32% of respondents don’t trust the security of digital payment technologies
• 36% don’t trust their customer support
• 29% don’t trust platforms to protect their confidentiality

Insurance could promote greater trust and adoption of digital payments:

• 75% of respondents say transaction insurance would boost their trust
• Impact of insurance is highest among consumers in Latin America, where 84% would fully trust or trust payment technology much more if they had personal cyber-scam insurance, and 82% for payment protection insurance
• Many respondents also see AI as a way to enhance security

Methodology:

The findings are based on a survey of 2,600 individuals in the US, Mexico, Brazil, Thailand, Singapore, Vietnam, Indonesia, and the Philippines that explored the impact of cyber scams on trust in digital payment technology. Conducted by Opinium on behalf of Chubb in June 2024, the survey covered adults who had made digital money transfers via traditional banking apps, fintechs, neobanks, or digital wire transfers in the last 12 months. The margin of error for the survey is +/- 2%.

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