There is a significant lack of consumer trust in commercial text messages, according to research released today. Commercial messages are communications sent on behalf of organizations and brands, often taking the form of banking updates, appointment reminders and password resets. While over 75 percent of Irish consumers surveyed reported receiving commercial SMS messages, only 15 percent of those questioned believe it is a secure way to receive such communications from a business…
There is a significant lack of consumer trust in commercial text messages, according to research released today. Commercial messages are communications sent on behalf of organizations and brands, often taking the form of banking updates, appointment reminders and password resets. While over 75 percent of Irish consumers surveyed reported receiving commercial SMS messages, only 15 percent of those questioned believe it is a secure way to receive such communications from a business.
The research, commissioned by AdaptiveMobile, the Dublin-headquartered world leader in mobile network security, uncovers how this lack of consumer trust is leaving companies exposed to serious brand damage, with 75 percent of Irish consumers holding the company sending the messages responsible for the security of the message. With over 46 percent of consumers believing SMS to be an insecure way of receiving communication from a business, and a further 38 percent having never even considered the security implications of such messages, brands are highly vulnerable should any breach of security occur.
As over 1,000 global telecoms industry professionals descend on Dublin to attend this week’s Wholesale Agreements and Solutions Group (WAS) event by the GSMA (the association that governs over 800 operators worldwide), this research casts a spotlight on one of the big issues the industry must tackle – how to ensure that messaging is secure throughout its journey from sender to recipient, and that consumers are protected from mobile malware and phishing attacks.
SMS remains the most effective way for organizations and brands to rapidly engage with their customers. Mobilesquared, the mobile research analysts, suggest the market for commercial text messaging (known in the industry as A2P or ‘application-to-person’ messaging) will be worth $17.21 billion globally by the end of 2016, rising to $58.75 billion by 2020. However, with commercial text messaging from banks, social networks and other businesses on the rise, consumer trust is being challenged by brands using insecure ‘grey routes’ to send important updates such as banking updates, appointment reminders and password resets.
“Some of the world’s biggest brands are taking shortcuts with their customers’ security,” said Ciaran Bradley, Chief Technology Officer, AdaptiveMobile. “By relying on ‘grey routes’ brands are not only at risk of being in breach of compliance and user privacy laws, but they are also collectively denying the telecom operators of millions in lost revenue. Our solutions sit in the core of mobile operators’ networks, therefore we see this grey route traffic on a daily basis. Indeed, AdaptiveMobile’s own research based on insights from 75 mobile networks and 30 billion mobile events every day, from every region of the globe, has revealed that each mobile operator is missing out on claiming on average $5 million per year in lost A2P messaging revenue.”
Many brands have already taken affirmative action to ensure they aren’t using this kind of grey route traffic. The benefits are clear, by using legitimate routes to send commercial messages, brands ensure that their reputation is protected, communications will reach target consumers, and that each message is in line with regulation and privacy laws. Parallel to this, AdaptiveMobile has been collaborating with mobile operators to cut out grey route traffic and help them to reclaim millions in lost revenue.
The research was commissioned and conducted by AdaptiveMobile and surveyed the opinions of over 400 mobile subscribers from the Dublin area. For more information about AdaptiveMobile, please visit the website at www.adaptivemobile.com.
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