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Survey Insights on Financial Authentication

A recent study conducted by Liquid Inc., a Tokyo-based firm, has unveiled significant insights regarding the awareness and attitudes of users towards financial transaction authentication methods. The survey, which included 472 participants aged 20 and above, came in response to the alarming rise in incidents of securities account hijacking, expected to become rampant by early 2025. Victims have already suffered losses amounting to hundreds of billions of yen, prompting a pressing need for effective security measures.

Key Findings from the Survey

The study aimed to gauge public perception of existing authentication modes, particularly focusing on the increasing importance of passkeys, a method recommended by the Financial Services Agency for enhancing phishing resistance. Here are the noteworthy results:

• - Awareness of Securities Account Hijacking: Approximately 71% of participants are aware of the growing issues surrounding securities account hijacking, stating they either know the details or are somewhat familiar with them. This reflects an increasing concern for the security among online users in financial transactions.
• - Preferred Security Measures: The top three security measures reported by users include the use of strong passwords (50.4%), incorporation of one-time passwords (47.0%), and vigilance against suspicious emails (40.3%). This suggests that users prioritize proactive measures to secure their financial data.
• - Challenges with Two-Factor Authentication: The survey revealed that around 40% of respondents find two-factor authentication, particularly through one-time passwords, challenging due to operational complexities. Many cited that the method is cumbersome, and it often consumes time, thus highlighting a need for more user-friendly solutions.

High Interest in Passkeys

An intriguing finding indicates that more than 80% of those surveyed either currently utilize or are interested in using passkeys in the near future. Specifically, 38.1% reported already using passkeys, while 28.4% expressed a desire to employ them in the future. The responses seem to align with the government's push towards mandatory adoption of such systems by financial institutions.

Among those who have used passkeys, 82.2% rated them as easy to use, with 42.8% claiming they find the system very user-friendly. This suggests a positive reception for passkeys, further evidenced by the support for additional identification checks during passkey registration, with over 84% of respondents endorsing additional security measures, including methods such as governmental ID verification.

Security as a Pre-Requisite for Financial Institutions

As consumers increasingly conduct financial transactions online, an overwhelming 86% of participants emphasized the importance of security when choosing a financial institution. About 37.5% responded that they strongly consider security measures, while another 48.5% indicated they somewhat prioritize it.

The Way Forward

Liquid Inc. continues to innovate in digital authentication solutions, focusing on projects like the LIQUID Auth service, which utilizes advanced biometric technologies to improve security in online finance, e-commerce, and more. Their push for a seamless yet secure online experience underscores the growing focus on identity verification systems that prioritize user experience and safety, such as face recognition and passkeys.

With this survey shedding light on the public's perceptions and preferences, it becomes clear that as the landscape of online transactions evolves, so too must the approaches to security. The transition toward passwordless authentication appears not only timely but also crucial in safeguarding user interests and enhancing overall security in the digital realm.

About Liquid Inc.

Based in Tokyo, Liquid Inc. aims to redefine digital authentication by integrating biometrics and innovative verification methods. The company, founded in 2018, has been at the forefront of developing robust authentication solutions for various sectors, catering to the need for secure and user-friendly interfaces in online financial transactions.

For more information, visit Liquid Auth and explore their range of services designed to enhance your financial transaction experiences.