Connected cars, light bulbs, voice assistants, chatbots, and more! The “Internet of things” (IoT) is expanding swiftly with new types of devices, many of them carrying potential to support banking and payment services. These emerging channels offer financial institutions and retailers the opportunity to engage with their customers in new ways. At the same time, fraudsters have proven themselves adept at rapidly finding the most effective ways to misuse any new banking or payment technology that reaches the market. This forces financial institutions to systematically evaluate the risks posed by new banking services while balancing the most effective fraud-fighting strategies with the expectations of their customers.
Key questions discussed in this report:
- What are the primary fraud risks posed by emerging channels and devices, like virtual assistant, chatbots, and voice banking?
- How prevalent are different types of consumer Internet of things devices in the US?
- How can financial institutions address fraud risks throughout the lifecycle of IoT devices?
- How can financial institutions balance customer expectations with effective fraud controls in emerging channels?
Consumer data in this report is based on information gathered in two Javelin surveys administered in 2017. Data was gathered and weighted to reflect a representative sample of the adult U.S. population:
- A random-sample panel of 3,000 respondents in a October 2017 online survey. The margin of sampling error is ±1.79 percentage points at the 95% confidence level. The margin of sampling error is higher for questions answered by smaller segments of respondents.
- A random-sample panel of 2,129 respondents in a November 2017 online survey. The margin of sampling error is ±2.12 percentage points at the 95% confidence level. The margin of sampling error is higher for questions answered smaller segments of respondents.
The total number of consumer IoT devices owned in the U.S. was reached based on responses from the November 2017 survey. 1,397 respondents personally own at least one listed IoT device. Respondents were asked to identify which types of devices they personally own and which are present in their household, but owned by another individual, along with how many of each device type were owned in their household.