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Chubb's Digital Payments and Cyber Scams Survey Finds Growing Impact of Fraud on Consumers; Harms Trust in Payment Methods
Sep 30, 2024

Across the globe, 61% have changed their behavior or reduced use of digital payment platforms due to cyber scam concerns. 75% say transaction insurance would boost their trust, increasing adoption.

NEW YORK, Sept. 30, 2024 /PRNewswire/ -- Chubb, a world leader in insurance, today released the results of its new global survey, "The Impact of Cyber Scams on Trust in Digital Payments," revealing the growing impact of cyber fraud on consumers, the misconceptions regarding cyber protections, and the significant changes in consumer purchasing behavior driven by escalating worries over cyber breaches.

Digital payments have become part of our daily lives and are increasingly crucial to fostering financially inclusive economies. Chubb's survey findings define the pivotal role insurance plays in building trust and helping to enable the growth of the digital payments ecosystem.

According to the survey conducted in the U.S., Mexico, Brazil, Indonesia, Singapore, the Philippines, Thailand, and Vietnam – nearly half (46%) of respondents mistakenly believe their payments are protected. This false sense of security is compounded by the fact that 61% of participants have changed their behavior or reduced their use of payment platforms due to fears about cyber scams.

Waning trust threatens exponential growth

All survey respondents have made a digital payment in the last year, and 63% have been a cyber scam victim or know someone who has been. The impact of this fraud extends beyond financial losses, eroding trust in payment platforms, hindering adoption.

"The future of digital payments is bright, and insurance will help play a crucial role in shaping its trajectory," said Sean Ringsted, Chubb's Chief Digital Business Officer. "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."

Respondents were asked about nine different types of scams. They are most troubled by phishing/vishing and impersonation scams, as well as fake product or service purchases. Some 61% of respondents have changed their behavior or reduced use of certain digital payment platforms over concerns.

Key findings from Chubb's Global Payments and Cyber Scams survey include:

Certain demographic and geographic survey audience 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%), Philippines (38%), Indonesia (36%), and Brazil (32%).

Threats of being hacked looms 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 – 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

Findings are based on a survey of 2,600 individuals in the U.S., Mexico, Brazil, Thailand, Singapore, Vietnam, Indonesia and the Philippines that explored the impact of cyberscams on levels of trust in digital payment technology. The survey was conducted by Opinium on behalf of Chubb in June 2024. The respondents were adults who had made digital money transfers through traditional banking apps / Fin Techs / Neo banks, or digital wire transfers in the last 12 months. The margin of error for the survey was +/- 2%.

About Chubb

Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume, and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength, and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris, and other locations, and employs approximately 40,000 people worldwide. Additional information can be found at: www.chubb.com.

SOURCE Chubb

For further information: Media Contact: Mediarelations@chubb.com