BioCatch, a global leader in behavioral biometrics, has announced the release of 2021 Fraud Transformation Survey: Detecting and Preventing Emerging Schemes a study independently conducted and prepared by Information Security Media Group. Based on a global survey of financial institutions, the report reveals the fraud threats creating the most concern and financial impact, the changing role of fraud management within organizations, and the business challenges driving investment in new fraud prevention technologies.
Some of the key highlights of the report include:
- Account takeover cited as the fraud threat causing the most concern among 72% of global financial institutions surveyed. Other top fraud threats cited include phishing, synthetic ID fraud and social engineering scams. These threats are also the same ones identified by respondents as having the most financial impact over the last year.
- 1 in 2 financial institutions cite loss of productivity as the biggest non-financial impact of fraud.
- 47% of responders state lack of visibility into risks introduced by new digital technologies as a top fraud management challenge.
- 2 out of 3 of financial institutions expect to increase their investment in anti-fraud resources.
“While the industry has made great strides in protecting consumers from cybercrime, the risk of fraud continues to take a heavy toll on financial institutions and the clients they serve,” said Raj Dasgupta, Director of Fraud Strategy at BioCatch. “There is still much more work to be done to combat account takeover and other forms of fraud, and the study confirms the industry has placed behavioral biometrics at the forefront of investment in the coming year.”
The report also revealed customer experience is becoming as equally important to financial institutions as managing the bottom line from fraud losses. Among financial institutions surveyed, 62 percent cited making customers feel secure as a top priority for investing in fraud prevention technology. This highlights the changing role of fraud management within financial institutions and its evolution to a business issue that involves multiple stakeholders with one in two financial institutions noting digital channel business leaders as a top influencer in fraud management decisions.
Two out of three financial institutions expect an increased investment in fraud management resources with behavioral biometrics and analytics, transaction analysis and monitoring, and device ID and intelligence cited as the top three fraud prevention technologies slated for investment over the next 18 months.
The survey polled fraud and cyber security professionals at more than 175 financial institutions across the globe. All regions were featured with half of respondents from the U.S. and Canada, 18 percent from the UK and Europe and 14 percent from Latin America. The survey was conducted between July 1 and August 20, 2021.