2020 highlighted just how adaptable, unrelenting, indiscriminate and opportunistic, fraudsters are – 2021 is probably not going to be much different. Through researching and understanding the various contributing factors to the success of fraud, we can be better equipped to combat it.
In a recent study by Frédéric Dubout, Experian’s Senior Consultant in Fraud and Identity, two key points emerged around fraud types. The increased complexity of fraud is the main reason why attempts succeed. At the same time, the effectiveness in dealing with suspicious activity directly hinges on a firm’s resourcing, processes and capabilities.
Three-quarters of participants accept they need to be able to recognise and tackle increased or evolving fraud trends. It’s particularly vital that as new fraud rings emerge, organisations can identify links across all channels, often between seemingly unconnected activities and behaviours.
Around half of the respondents (49.1%) also admit there’s a need to ensure a balanced approach to detecting and preventing fraud. AI underpinned with machine learning techniques helps firms achieve a win-win, with increased fraud detection helping safeguard customers and increased revenues by reducing referrals and friction.
The ability to maximise and make the most of the available data is also vital for nearly half (46.7%) of all respondents. Analysis through covert device intelligence is proving hugely successful in preventing suspicious transactions while keeping online customer journeys friction-free.
For more insights on why frauds are succeeding, download our fraud report here.