Our research reveals majority of boardrooms are now waking up to the fact fraud prevention and friction have a direct impact on customer experience and lost sales.
Many businesses admit increasing exposure to fraud is at the top of their agenda – despite big gaps in best practice when it comes to prevention. Heavy-handed and out-dated approaches to fraud prevention create additional risk, increased customer ‘friction’ – costing lost sales and lost business.
But more than three out of four (77%) CEOs admit their current fraud prevention strategies are ineffective. In fact, only around one in four (28%) believe their organisation has a balanced approach to complex fraud that does not directly impact customers’ online journeys.
Nearly half (45%) of all senior business leaders plan to improve their fraud analytics capabilities by investing in new technologies including device recognition software.
During the past 12 months, fraud has had an impact on a host of key business metrics including the cost to serve customers (48%), customer churn (35%) and the level of bad debt (33%) – all of which have jumped significantly.
At the same time, more than four out of five (81%) businesses are also now making it a priority to ensure they fully understand their customers and their typical behaviour.
The majority (68%) of C-level executives polled also acknowledge the impact of fraud protection and friction and need to quickly close the gap by increasing their budgets in improving customer experience and customer management.
Despite wide scale boardroom concerns at increased exposure to fraud, around two out of five (40%) businesses still plan to fully migrate services from physical to digital within the next 12 months.
Many businesses are waking up to the fact time is running out if they are to successfully meet customer expectations and compete with disruptive, digital-savvy commercial rivals.
We recognise the critical balance that needs to be struck between fraud prevention, online friction and customer experience, which is why we’ve invested in mobile and device recognition technology and has seen us recognised as a market leader. At the same time, we’re also working closely with thousands of businesses right across the globe to ensure they have balanced fraud strategies in place to meet the expectations of modern-day online consumers.
On February 22, Barclays Africa’s Group Head of Fraud Risk Management, Paul Mathias joins Experian fraud expert, Chris Thomas to share their views and insights on the latest fraud trends and the challenges facing organisations as they strive to deliver a first class digital experience while keeping out the fraudsters.
To join the webinar simply click here.