New TeleSign Report Shows Consumers Value Their Online Lives, Expect Businesses to Protect Them

2016 has been a rough year when it comes to data breaches. With some of the largest consumer breaches in history, 2016 has already surpassed the number of breaches from 2015 (858 breaches and climbing, up from 781 according to the Identity Theft Resource Center) and we still have over a month left in the year. In order to help fight back against this endless wave of breaches, we have commissioned our second-annual TeleSign Consumer Account Security Report to better understand consumer sentiments and habits around online account security.

How Valuable Are Our Online Lives?One of the most interesting things we found in our Consumer Account Security Report 2016 is the value consumers place on their online lives. Thirty-one percent of all consumers surveyed said they value their online life at $100,000 or more, with some even placing the value at priceless. Between financials, photos, personal information and much more, consumers are storing more and more of their lives online, and that is reflected in the value they place on their accounts. With so much value placed on their online lives, it's no surprise to see 88% of consumers are worried about being hacked. But are they doing enough to protect themselves?

Who Is Responsible for Security?A majority of consumers (55%) believe businesses are primarily responsible for the security of their online accounts, and in fact 73% want companies to provide extra layers of security beyond the password. An easy explanation for why consumers are asking for more security is that passwords simply aren't working. Only 38% of consumers feel very confident in passwords to protect their accounts and nearly three in four (73%) say forgetting their password is the most frustrating part of the security process. But according to our report, issues with online account security don't fall entirely on the password. Consumer habits are also partly to blame.

What's the Status of Passwords? Poor password habits continue to haunt consumers, with 46% using passwords that are older than five years. Further, consumers on average use the same password for seven online accounts, leaving a whopping 71% of all online accounts guarded by duplicate passwords.

Has Use of Two-Factor Authentication Increased? Looking at two-factor authentication (2FA) use amongst consumers, there is cause for hope. Our 2016 report shows that 46% of consumers currently use 2FA for at least one of their online accounts, versus just 39% in 2015 (an 18% year-over-year increase). Plus, of the 46% who use 2FA, 77% have turned it on for at least one new account in the past year, showing that not only are more people turning it on, but people are using it for more accounts than ever before.

Additional Insights

  • Millennials are most at risk of fraud, with 64% experiencing a security incident in the past year, versus 44% of all other generations
  • 42% of security incidents had a financial impact on the consumer
  • Only 12% of consumers are concerned about securing their IoT devices

Ultimately, there is a lot at stake in the world of online account security. More than half (51%) of consumers experienced a security incident in the past year and businesses that don't properly protect their users risk losing them, with 1 in 3 consumers saying they have stopped doing business with a company where their account was compromised.

To see how 2FA can help your business prevent fraud and protect brand value, get started now with a free trial of TeleSign's account security solutions. To get step-by-step instructions on how enable 2FA for roughly 200 of the world's most popular sites, check out the ultimate guide to 2FA.

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