An increasing number of Americans (more than 75%) now prefer to pay their bills digitally, especially Gen Z and Millennials, who most often opt for mobile payments. The growth in digital payments also brings certain risks, such as online identity theft, which has affected one in five consumers, according to the 2024 ACI Speedpay Pulse Report, published by ACI Worldwide, an original innovator in global payments technology.
The report includes new survey questions to reflect the rapid proliferation of digital communications and payment channels, shedding light on the concurrent increase in digital identity and payment fraud.
The shift to mobile payments is primarily driven by biller and bank mobile apps and digital wallets like Apple Pay and Google Pay. However, 18.7% of respondents reported falling victim to online identity theft, with two in five reporting that an incident resulted in accounts being opened in their name. Moreover, over one-third of consumers believe their data is less secure than it was five years ago.
Consumers' fear of scams is complicating debt collection, with 34% avoiding debt collector communications. The report suggests that replacing debt collectors with virtual agents could offer a more secure and efficient solution to this problem.
Additionally, 29% of consumers who infrequently change passwords only do so when prompted by billers, emphasizing the need for more proactive outreach and education. Nearly half of the surveyed consumers believe companies fail to adequately educate them on data security, a concern that has grown since 2023.
"The surge in digital payments adoption presents promising growth opportunities for billers, but the threats of online identity theft and other risks continue to burden consumers. This creates a prime opportunity for billers to enhance their payment capabilities with advanced, AI-powered fraud management solutions and double down on fraud awareness education to create a differentiated and secure customer experience," said Ron Shultz, General Manager of ACI Speedpay.
