PROVIDENCE – In an increasingly digital world, fraud through online and phone transactions has become the top concern for banks and credit unions, according to a new study by the Federal Reserve Bank of Boston.
Nearly 40% of New England financial institutions surveyed named “card not present” fraud, in which a thief obtains a consumer’s card information through a phone online payment, as their No. 1 concern, according to the 2019 Mobile Banking and Payment Survey of New England. This represents a shift over the 2016 survey, in which customer behavior such as easily cracked passcodes was the primary concern.
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The survey also found that the percentage of banks offering mobile peer-to-peer services such as PayPayl, Venmo and Zelle has increased by 13% to 67% from 2016 to 2019. A quarter of banks not already offering these services planned to unveil them by 2021. Among credit unions, 39% already offered peer-to-peer services and 29% anticipated adding them by 2021.
Other key findings included that contactless credit cards remain not widely used, with just 7% of banks and 4% of credit unions offering them. Mobile-payment services, however, are on the rise, used by 79% of banks and 57% of credit unions.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
