Article 3 min

Building Trust for Crypto Customers

Industry report - How Cryptocurrency Companies are Turning Onboarding Friction Into Function

November 10, 2022  

Crypto businesses can reassure wary customers by showing them security is a top priority through identity verification, according to recent research from Trulioo.

The “Crypto customers call for reassurance in uncertain times” industry report found consumers now regard identity verification checks as vital and reassuring steps, rather than an inconvenience. They want those reassurances during onboarding and throughout their relationship with crypto exchanges.

Economic uncertainty, geopolitical unrest, and emerging online fraud and identity theft threats have left consumers more cautious. They still expect speed and convenience, but the balance tips more toward security.

Creating certainty in uncertain times

While 75% of crypto users say they’re on higher alert when dealing with companies online, they are putting the onus for their security on companies. Among crypto users, 83% said those businesses should be doing more to reassure and protect consumers.

Identity verification can provide those reassurances, and 78% of crypto users said they’re more comfortable with the process taking longer or involving more steps. The majority of crypto leaders are hearing that message, with 82% pointing to identity verification as a way to create some level of certainty for consumers at a time of growing uncertainty.

But there’s still work to do. The research found that 98% of crypto leaders report at least one way in which their identity verification approach is threatening customer trust. Some of the threats include:

  • An approach that’s too onerous and fractures the customer experience
  • Lack of agility and not keeping up with emerging security threats and fraud risks
  • Business silos and fragmented verification that leave potential security holes
  • Lack of communication and transparency about data collection

Building trust requires more agile and resilient onboarding and identity verification, according to 79% of crypto leaders.

But defending against fraud and risk goes beyond account opening, including for activity authenticity, anomaly detection, continuous watchlist monitoring, online behavioral analysis and monitoring high-value transactions. Overall, 87% of crypto leaders said identity verification needs to be seen as a continuous process throughout the customer journey, rather than something that occurs only during account creation.

Appealing to mainstream consumers

The next generation of crypto customers likely will be more mainstream, which will amplify the need for education, convenient processes and strong security. While early adopters might be fine with complex technology, average consumers want familiar processes they trust.

Consumers understand and accept identity verification. When people who use crypto exchanges encounter identity verification, 83% say it increases their trust in the brand, and 73% say it increases their trust in the industry.

Consumer trust ripples out from that instance of identity verification. There is a significant upside for crypto businesses that meet customer expectations for secure, smooth and empowering experiences.