Research released today by Callcredit Information Group, ahead of its annual Fraud Summit in June, reveals that over half (59%) of businesses predict a serious fraud incident or security breach within the next year if they continue with their current technology, processes and tools. In addition, a further 17% of those surveyed revealed that this is something they have already experienced.
The research, which asked 105 fraud prevention managers and directors about their attitudes and techniques, also found that fraud prevention priorities have shifted since 2017. This year, one of the biggest focuses in the fight against fraud is developing a fraud response strategy, according to 91% of those surveyed, compared to 80% last year.
John Cannon, Managing Director, Fraud & ID, Callcredit Information Group, commented: “Our research suggests that for most businesses, a security breach is now considered an almost inevitable occurrence, so it’s no surprise that fraud leaders see prevention as the key tactic in the fight against fraud. It’s encouraging to see that businesses are increasingly adopting robust prevention tactics, but the challenge is far from over.
“With the ever-evolving fraud threat, businesses are having to continually adapt their strategies to tackle the problem. Technology plays a central role in that, and is constantly developing, with cutting-edge techniques like machine learning and artificial intelligence complementing more traditional methods. In fact, over half of the fraud leaders we surveyed (58%) believe machine learning and pattern-recognition will be vital to our future fraud prevention activities.”
The research highlighted a significant uplift in the adoption of identity verification measures and fraud prevention technology, with 90% of those surveyed stating these were amongst their top priorities this year. Unsurprisingly, compliance with the latest regulation also remains a key focus for nine out of 10 fraud leaders, as they adapt to the changing landscape and more stringent regulatory requirements.
Cannon concluded: “Collaboration is essential when it comes to fighting fraud. Businesses need to come together to share insights and best practice across all sectors if they want to stay a step ahead of the fraudsters. Ongoing fraud has had a damaging impact on trust in businesses and it’s now crucial that they work to win back consumer confidence, so they need a broad understanding of the tools that are available to ensure they are keeping their business, and their consumers’ data, safe.”