Mobile security: New opportunities for financial institutions

Financial institutions (FIs) are in an enviable position
to sell security solutions to consumers to combat fraud, as almost four out of
ten consumers have no identity protection services, according to Javelin
Strategy & Research’s second annual antivirus, browser, and mobile security

The report, based on data from surveys with almost 25,000
consumers, presents year-to-year comparisons of consumer behaviors, evaluations
of antivirus and mobile and browser security products, and highlights revenue
opportunities for FIs.

Revenue generating opportunities for FIs targeting those
consumer groups where the levels of Internet device ownership are high and
adoption rates of antivirus software are low.

While consumers are using Internet devices at exploding
rates – smartphone ownership alone increased 42 percent from 2010 to 2011,
slightly more than half of consumers do not have any antivirus software.

Additional significant findings are presented relative to
various ethnic groups adoption rates versus the rate of smartphone and internet
device ownership.

Savvy FIs can use the information in this report to
target specific demographic groups. We found that consumers actually prefer
obtaining identity protection services from their FIs to any other source
including independent security companies and credit bureaus – by a more than a
2-to-1 ratio,” said James Van Dyke, president and founder, Javelin.

Consumers indicate a range of benefits associated with a
more secure
online experience. They have a more positive perception of their FI, are less
likely to leave the FI after an incident of fraud, and will make more purchases

Fraud is becoming increasingly sophisticated. Fraudsters
are able to consolidate information leaks, such as those from the 2011 data
breaches that compromised more than 180 million records, into automated spear
phishing attacks,” said Philip Blank, managing director, Security, Risk and
Fraud, Javelin.

New technologies also present new security challenges.
Our recommendations will mitigate the risks to both FIs and consumers, as well
as pave the way for FIs to offer revenue-generating security-related software
for PCs, browsers, and mobile devices,” Philip added.

By Team
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