As digital payments become an essential part of everyday transactions and a key component of financial inclusion, a new report from Chubb reveals that 63% of users have either fallen victim to cyber scams or know someone who has. The report, titled “The Impact of Cyber Scams on Trust in Digital Payments,” highlights the prevalence of scams, including phishing, impersonation, and fraudulent purchases, which have raised significant concerns among consumers.
The findings underscore the important role that insurance can play in rebuilding trust in digital payment systems. Sean Ringsted, Chubb’s Chief Digital Business Officer, stated that insurance is vital for the future of digital payments as it helps address emerging risks and enhances security.
The survey, conducted across the United States, Mexico, Brazil, Indonesia, Singapore, the Philippines, Thailand, and Vietnam, revealed that nearly half (46%) of respondents mistakenly believe their digital payments are secure. Furthermore, 61% reported altering their payment behaviors or reducing their use of digital payment platforms due to fears surrounding cyber scams.
Cyber scams disproportionately affect certain demographics, with 33% of women in Asia and younger individuals in both the US and Asia reporting incidents of scams. Notably, women in Thailand (39%), the Philippines (38%), and Indonesia (36%) are particularly vulnerable.
Concerns about security are widespread, with 53% of respondents fearing their accounts could be hacked and 48% worried about potential data breaches. Trust in digital payment platforms varies significantly; 69% of women and 96% of users making international transfers reported greater confidence in these systems.
The report indicates that 75% of respondents believe transaction insurance would enhance their trust in digital payments. This sentiment is especially pronounced in Latin America, where 84% of participants expressed increased trust if cyber-scam insurance were available.
Conducted by Opinium on behalf of Chubb in June 2024, the survey gathered responses from 2,600 adults who had made digital transfers in the past year. The margin of error for the survey is +/- 2%.
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