This week we consider two sides of the same Bitcoin. On the one hand, blockchain technology has the potential to offer a whole new means of building trust with members. Its innate transparency makes it uniquely secure. On the other hand, blockchain’s relationship to Bitcoin cryptocurrency – and the recent volatility in Bitcoin’s value – creates a sketchy association in many people’s minds. Can blockchain raise the industry’s trust quotient? Or are its positives and negatives a wash?
Of course, blockchain’s actual ability to impact security and consumer trust is still theoretical, as its use among credit unions is not yet widespread. So this week’s reads also include recent information on identity fraud and biometrics, and a look at whether consumers themselves are mucking up the system by providing fake data.
Blockchain Explained: It Builds Trust When You Need It Most
In this story, CNET promises to reveal, “everything you need to know about the technology powering the bitcoin cryptocurrency today and, soon, a myriad of services that will change your life.” Our trust in information is eroding: Can blockchain offer a new transparent and objective information model with the potential to build back trust?
Will Blockchain Deliver on Trust?
Here’s a more payments-driven analysis of blockchain’s potential. Taking into account its history with the recently ultra-volatile cryptocurrency Bitcoin and the unlikely partnerships with fintech companies it’s likely to require, Payments Journal sizes up the true long- and short-term prospects for blockchain. Net: It’s compelling, but complicated.
Fake Data: Survey Reveals Extent of False Data Supplied by Consumers
Meanwhile, trust is a two-way street. A new survey of 7,500 consumers in the U.S., France, Germany, Italy and the U.K., found that 78 percent of consumers are falsifying data online to avoid sharing personal information with companies. “According to the survey, 41 percent of consumers admit to intentionally falsifying personal information and data when signing up for products and services online, revealing a continued skepticism over how their data is used. More than half of respondents (55 percent) also said they would avoid handing personal data to a company they know to have been selling or misusing data without consent.”
How Secure Are Biometrics?
Worldwide, the mobile biometrics market is expected to exceed $50.6 billion in revenue by 2022, growing from a base of $6.5 billion in 2016. Yet, despite this growth, financial services institutions and consumers alike harbor legitimate concerns about whether mobile biometrics actually delivers on its promise of improved security.
Identity Fraud Reaches Record Levels
Then again, the need for new security tools is hard to deny. According to Javelin Strategy & Research’s new 2018 Identity Fraud Study, identity fraud continues to move online and increase in complexity, resulting in $16.8 billion dollars stolen last year. Account takeovers tripled over the past year, reaching a four-year high, and causing an average of $290 and 16 hours for consumers to resolve.