Digital Payment Trust Eroded by Cyber Scams Amid Growing Global Transactions

The global surge in digital payments, projected to reach $16.6 trillion by 2028, is accompanied by a rise in cyber scams, which significantly erode consumer trust. According to Chubb’s latest report, nearly two-thirds of survey respondents have either been victims or know someone affected by a cyber scam. These attacks, ranging from phishing and impersonation to fake product schemes, have altered consumer behavior worldwide, with many reducing their use of digital payment platforms out of fear of fraud.

The report highlights a significant gap in user trust, with concerns over security, customer support, and data confidentiality persisting. Interestingly, the integration of insurance could address this issue, with three-quarters of consumers stating that having transaction insurance would enhance their confidence in using digital payment technologies. The study suggests that collaboration among financial institutions, merchants, insurers, and regulators is essential to creating a safer, more trustworthy digital payment ecosystem.

The rising threat of cyber scams demands greater consumer education, enhanced security measures, and the promotion of risk-transfer solutions like insurance to ensure continued growth and adoption of digital payments globally.