Part 4
Delivering maximum security is a must
The rapidly developing nature of the market creates a vast need for more fraud prevention and security education. This need was amplified in 2022, when $2.8 billion were lost to at least 180 exploits, with 65% of stolen funds coming from just five bridge hacks.4
And, as the saying goes, once trust is lost, it’s hard to build it again. This notion is rooted in research — 81% of customers refuse to do business with or buy from a brand that they don’t trust, and 89% are ready to disengage from a brand that breaches their trust.5
That said, the crypto market continues to rapidly grow. In fact, at least eight major U.S. financial institutions managing $27 trillion in assets are actively seeking to expose clients to Bitcoin and crypto.6 The industry is alive as ever, which is why your brand must establish cream-of-the-crop security now.
4 CoinGecko, “2022 annual crypto-industry report,” coingecko.com.
5 Gartner, “Brand strategies focused on dependability score the highest on customer trust,” gartner.com.
6 Cointelegraph, “Firms managing $27T in assets are embracing crypto: CoinShares CSO,” cointelegraph.com.
Issues identified in crypto-asset customer complaints
Fraud or scam
Other transaction problem
Money was not available when promised
Other problems
As price volatility and adoption of crypto assets have increased in recent years, so have the complaints to the CFPB. Over the past decade, the CFPB received more than 8,400 complaints related to crypto assets, with the great majority of them received in the past two years. The CFPB identified the complaints fall into the above categories.
The 20% titled “Other problems” includes “confusing or missing disclosures” (3%), “wrong amount charged or received” (3%), “unexpected or other fees” (1%) and “other service problem” (13%).
Source: CFPB, "Consumer complaint database," cfpb.gov.
Spotlight
A good spotlight example is showcased in the CFPB Consumer Complaint Database. After trying to reach customer service and solve an account-related problem for nearly a month, one consumer stated:
"BEYOND FRUSTRATING that my investment money is locked with no access and their lack of customer service is causing me to lose money every day as the [crypto-asset] market fluctuates like a stock price..."
So what should your brand prioritize when it comes to safety? You need to base your ecosystem on rock-solid security that goes above and beyond, including these five features.
The strongest possible security measures
Education around scams
Regular, consistent communication
Continuous security testing
Community support
Our takeaway
A fundamental part of a strong CX is making customers feel safe and confident, and the blockchain is notorious for its security issues and billion-dollar hacks in recent years. Your brand’s security measures should be rock solid and continuous and your educational support and engagement with consumers should be active 100% of the time.