The increasing digitalization of consumption has revealed a concerning paradox: while the volume of online purchases grows, consumers’ sense of security declines. According to Serasa Experian’s 2024 Digital Identity and Fraud Report, Brazil’s first and largest datatech, 48% of respondents have abandoned a purchase due to lack of trust in the website or app. Despite this, online activity showed an average growth of 1.6 percentage points in 2024 compared to 2023. Nearly half (48%) reported making between 1 and 3 digital purchases every month. However, the belief that companies adopt effective protection measures dropped from 51% to 43%.
This scenario indicates that, despite the convenience of digitalization, consumers still don’t feel fully protected. “The increasing digitalization has brought countless benefits for both businesses and consumers, but it has also exposed vulnerabilities that need to be addressed. With these insights, there’s an opportunity for companies to invest in robust authentication and fraud prevention solutions to ensure consumer trust in the online environment,” comments Caio Rocha, Director of Authentication and Fraud Prevention Products at Serasa Experian.
What do consumers fear most when shopping online?
The most cited fears among respondents when making an online purchase were “I might buy from a fake website” (41%), “someone might buy something using my data” (41%), and “my data might leak” (37%)—situations that continue to impact users’ digital experience.
Physical biometrics as a reliable authentication solution
About 69% of consumers consider it essential for companies to accurately identify them in the online environment. This factor becomes even more crucial given the rise in fraud attempts, which, according to Serasa Experian’s Fraud Attempt Indicator for November 2024, exceeded one million incidents in the month—equivalent to one occurrence every 2.5 seconds. Faced with this scenario, companies need to strengthen their protection solutions without compromising user experience.
The research reveals that authentication methods become even more essential for security, such as physical biometrics, which includes facial recognition, fingerprinting, and voice recognition: 7 out of 10 consumers (71.8%) say they feel safe using the technology, and its use has grown significantly over the past year, rising from 59% to 67%. Behavioral biometrics—which analyzes patterns like screen pressure, typing style, and voice variations—is still little known by users.
With the advancement of authentication technologies, Rocha points out that investing in digital security has ceased to be a differentiator and has become an imperative necessity for companies seeking to ensure customer trust and mitigate fraud risks. “Physical biometrics is a reliable solution because it’s tangible and hard to replicate, but given Brazil’s dynamic fraud landscape, effective prevention requires a layered strategy. Knowing the consumer beyond their identity allows for identifying behavioral patterns, reducing friction, and strengthening security. At Serasa Experian, intelligence combined with technologies is a differentiator, blending facial biometrics, device analysis, document verification, and analytical intelligence to detect fraud and protect transactions. This way, companies ensure security without compromising user experience, balancing prevention and convenience.”
