Consumer faith in the security of passwords and PINS is plunging, with biometric voice verification now the preferred option.

Australian consumers are becoming increasingly con cerned about issues of security and the methods or ganisations use to verify their identity, according to a new study by Sydney-based research company callcentres.net.

The 2009 Salmat VeCommerce Identity Verification Study highlights consumers’ fears that traditional PINs and pass words do not provide adequate protection of their personal information, with 67 per cent reporting that they believe their security details are at risk. Just over half (51 per cent) feel that someone else may be able to accurately guess their pass word, PIN or security details for interactions over the phone, while 59 per cent say they believe someone else may actu ally know these details.

When extrapolated to the wider Australian population, this equates to about 44 million accounts held by Australians being regarded as currently vulnerable.

“An increasing number of consumers in the Australian market believe that conventional forms of identity verifica tion, such as PINs and passwords, are becoming more vul nerable to fraud, theft or misuse,” says Salmat VeCommerce managing director Paul Magee. “These concerns are focused around the ease with which the personal information can be guessed, the possibility of information being stolen and the use of technology to hack information.”

In the same study conducted in 2008, just 15 per cent of Australian consumers considered the use of passwords in the identification process as “very” or “extremely” vulnerable. In 2009, this figure jumped to just over one in four consumers (27 per cent). The main reasons for fears about the security of their passwords were that they can be easy to guess (51 per cent), technology can be used to hack information (17 per cent), and information can be stolen or call centre staff can be dishonest (12 per cent).

About six in 10 respondents (57 per cent) reported that they find having to remember multiple PINs and passwords frustrating. Indeed, a significant proportion (41 per cent) had to remember a password or PIN for more than five different organisations. Perhaps unsurprisingly, therefore, over the past 12 months 78 per cent had forgotten a password or PIN on at least one occasion and were required to divulge additional personal information to confirm their identity.

The most-preferred method of verifying identity was bio metric voice identification – a technology that enables a per son’s identify to be authenticated using the unique charac teristics of their voice. This was favoured by 45 per cent of respondents, followed by PIN (21 per cent), password (18 per cent) and personal details or history questions (16 per cent).

“More than ever, consumers are keen to ensure that their personal information is protected,” Magee says. “If this means the process is a little more complex, that is a sacrifice most people are happy to wear. Their paramount concern is that this information is dealt with in an appropriate way and that they retain control over it as much as possible.

”The survey found that 67 per cent of Australians are con cerned about fraud and identity theft (up from 63 per cent in 2008), while 62 per cent have become more careful about sharing their personal information (up from 58 per cent in 2008). It also revealed that 56 per cent of people felt un comfortable providing personal details over the phone to a call centre representative.

An alarming 37 per cent of respondents had either experienced identity fraud or theft themselves, or had a friend or family member who had fallen victim to the crimes.

“The threat of identity theft and fraud has become a very real concern,” Magee says. “Identity crime is one of the fastest-growing offences across the globe, and Australia is no exception.”