A New Report from Kount and Javelin Research details how fraud slows digital innovation. Protecting Digital Innovation: Emerging Fraud and Attack Vectors, conducted by Javelin Research, surveyed hundreds of respondents across businesses in the retail, restaurant, insurance, and financial industries. The survey results reveal that the risk of fraud slows innovation across industries. However, it also discovered that fraud prevention strategies transcend industry, enabling different businesses to learn from each other and adopt similar fraud mitigation strategies and tactics when innovating their products and services.
Across industries, the top focus across businesses is adding new products and services at 57%, and refining the user experience at 55%.
The problem lies when they bring these advancements to market: businesses face fraud challenges because new digital products and services attract new fraud attacks.
The report found that 42% of businesses say fraud impedes their expansion into new digital channels and services. However, only 36% are focused on reducing current fraud and the associated costs, as well as new fraud, by improving identity verification for new users.
With the threat of emerging fraud and increasing expectations for a frictionless customer experience, businesses are challenged to balance competing pressure to innovate, grow revenue, and provide a good user experience.
Rich Stuppy, Kount’s Chief Customer Experience Officer, says as businesses integrate new digital features — such as voice ordering or mobile wallets — to engage with their customers, there are increased opportunities for fraud. “As enticing as these new innovations are for businesses, the fact is that many aren’t adopting the proper fraud controls at the same pace,” he says. “This report underscores the fact that digital innovation and the corresponding increases in revenue in these industries will never reach their full potential without integrating proper fraud prevention initiatives.”
Digital transformation has reached different levels of maturity for Retail, Restaurant, Consumer Banking, and Insurance verticals. And while fraud prevention is an essential component of any successful business advancements, fraud prevention solutions need to be low friction.
48% of businesses report customers are more sensitive to anti-fraud measures that disrupt their online experience than they were a year ago.
In addition, the businesses surveyed revealed that 64% of their customers are not confident in the digital security of the businesses’ digital channels.
The report analyzes each industry’s innovation and fraud controls, providing a benchmark for and recommendations on advancing innovation while balancing fraud reduction. To be effective, businesses should balance user experience, operational considerations, and fraud mitigation when launching new innovations.
The report provides in-depth recommendations that can help businesses combat digital fraud, including ways to:
Information contained on this page is provided by an independent third-party content provider. Frankly and this Site make no warranties or representations in connection therewith. If you are affiliated with this page and would like it removed please contact email@example.com