ID Theft Still Concern Amid Economic Slowdown

Oct 27, 2008 4:54 PM

As the Red Flag deadline draws near for financial institutions to develop identity theft protection programs, the results of a new consumer survey conducted by Harris Interactive for Secure Identity Systems found that more than half of bank customers worried about the current state of their bank are concerned that their money and identity are not safe.

According to the survey, bank customers with concerns regarding financial institutions are more worried about identity theft than other banking issues, such as bank fees or financial reimbursement if their bank fails. Among adults who have worries about their bank or financial institution: 40 percent are worried that they might be subject to identity theft. 39 percent are worried that their bank might fail given the current financial crisis. 32 percent feel their bank charges fees that are too high. 31 percent are concerned that they will not be reimbursed should their bank fail.

The consumer poll also revealed that one-third (35 percent) of bank customers are only somewhat or not at all confident that their personal information is secure at their bank or financial institution. When it comes to customer loyalty to their bank, 57 percent of bank customers surveyed would be at least somewhat likely to switch to another bank if it offered free identity theft protection services, more so even than lower account fees (52 percent). One-fourth (26 percent) of bank customers indicated that they would likely make the switch for free identity theft protection. Other incentives that would make bank customers likely to switch banks include: a $100 deposit in their account (28 percent); lower account fees (23 percent); a digital camera (12 percent); a raffle entry for a free vacation (6 percent).

"This is a tumultuous time for many financial institutions throughout the country, but it's important for banks to recognize the concerns of their customers," says Bryan Ansley, CEO of Secure Identity Systems. "The results of our research show that identity theft continues to be an important issue for consumers, even during the strain of the current economic conditions. Bank customers want security for their money and their personal information. We hope that banks will take the necessary steps to meet the Red Flag compliances so that they can offer customers more safeguards and reduce the risks of fraud."

The survey polled 2,212 U.S. adults ages 18 and up on the topics of banking and identity theft.

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