As fraud continues to evolve, it remains a significant challenge for businesses, especially in the face of high customer expectations. Your role in effectively harmonizing fraud protection with minimal friction is crucial for cultivating customer loyalty and driving revenue. When businesses can instill trust without unwarranted complications, they can deter fraud and drive growth.
Our Global Fraud Report: 9th Edition provides businesses with actionable insights to effectively reduce fraud’s growing volume and cost while enhancing the customer journey.
Track the impact of Gen AI on traditional forms of fraud
Executives identified generative AI as the most significant fraud trend over the next 3-5 years. With the rapid advancements in artificial intelligence, businesses benefit from innovation while facing increased security and fraud concerns. One of the most troubling developments is the rise of familiar types of fraud—such as synthetic identity fraud (SIF) and phishing—enabled by generative AI. For example, 74% of executives are worried that the technology will make phishing or smishing attacks more prevalent.
While AI is not new, many are still exploring how it works and what it means for their business. Therefore, it is essential to understand the different types of AI and how the tech might be used for fraud. When asked about specific ways it would impact, they mentioned more accurate synthetic identities, an increased volume of phishing/smishing, and more convincing fake IDs.
Maintain an omnichannel view in fraud
Most companies have reported an escalation in fraudulent activities across mobile, online, contact centers, and in-person channels. Notably, the heightened impact has been most pronounced in digital channels, specifically online and mobile, which collectively account for 65% of the surge in fraudulent incidents.
This prevailing trend aligns with the pervasive integration of digital technologies. In fact, 70% of firms have expressed their intent to sustain or increase their investments in the mobile channel over the ensuing year. Despite the emphasis on digital fraud, businesses should not disregard other channels.
Fraudulent activities are increasingly transcending channel boundaries. While the emphasis on digital fraud prevails, safeguarding contact centers and in-person channels cannot be overstated. Given that fraudsters can capitalize on vulnerabilities within an interconnected system of online and offline channels, upholding an omnichannel outlook in fraud prevention is vital for growth. Maintaining a broader view is can also be a competitive advantage as 81% of companies believe that cross-sector intelligence sharing and collaboration can be a strategic differentiator that allows them to more effectively combat fraud.
Fight fraud, advance the customer experience
In order to advance the customer experience in a way that balances the right amount of convenience with additional security layers as needed, businesses must act strategically given the importance of easy onboarding: 57% of businesses conveyed it’s essential to customers. At the same time, the best experience is one that is considered secure, according to 68% of consumers who placed a higher value on a secure onboarding experience in our survey. Generational experiences are also important to factor in, since 58% of Gen Z customers surveyed will drop off if account registration is too complex.
To address and balance these challenges, most respondents, specifically 65%, perceive identity verification (IDV) as a strategic differentiator. However, 53% have encountered growing complexity within the identity verification landscape. This complexity is predominantly ascribed to multiple solutions and vendors, making it challenging to promptly and accurately differentiate between genuine customers and potential fraudsters. Notably, 43% of companies utilize multiple identity verification providers during onboarding.
By consolidating IDV providers, organizations can optimize the customer experience and effectively combat fraud. A substantial 86% of respondents emphasize the significance of having a singular vendor for identity verification and fraud protection to enhance the customer experience. A complete verification platform that includes advanced step authentication techniques, onboarding intelligence and access to a cross-industry network empowers businesses to streamline digital journeys.
A comprehensive IDV platform significantly strengthens a business’s fraud prevention strategy in this increasingly interconnected world. IDV, supplemented by unparalleled and immediate intelligence, is crucial for authenticating legitimate customers, incentivizing loyal patrons, and promptly identifying and rejecting fraudsters, irrespective of industry or location.
Read the full global fraud report to unlock all the insights and better understand how to create an effective fraud prevention strategy.
