New Accenture Report Highlights Significant Spike in Consumer Fraud, Offers Steps for Public Safety Agencies to Help Counter the Increase

Rhea-AI Summary

Accenture (NYSE: ACN) reports a significant rise in consumer fraud, with cases tripling from 2020 to 2021. The report analyzed data from eight nations and noted a 22.5% annual growth rate in fraud during the pandemic, compared to 6.8% from 2013 to 2019. By 2027, up to 24% of the population could be affected under pessimistic scenarios. Accenture emphasizes the need for proactive collaboration among public safety agencies and outlines strategies focused on intelligence gathering, incident detection, and prevention efforts.

Positive

• Accenture's report highlights a growing need for public safety agencies to innovate strategies against rising consumer fraud.
• The report provides a framework for improving operational response systems across varying maturity levels.

Negative

• Consumer fraud cases have shown a substantial rise, significantly impacting consumers and businesses.
• Forecasts indicate that by 2027, 24% of the population may be affected by fraud under pessimistic scenarios.

NEW YORK--(BUSINESS WIRE)-- Reported cases of consumer fraud more than tripled in the years 2020-2021 from prior years, finds a new report by Accenture (NYSE: ACN), presenting a growing challenge for public safety agencies to find new strategies to counter the trend.

A framework for evolving the prevention and detection of fraud (Graphic: Business Wire)

The report, Cracking the Code on Consumer Fraud, compiled data from eight developed nations (Australia, Canada, France, Germany, Italy, Singapore, United Kingdom, and the United States) on consumer fraud, defined as any fraud directly targeting citizens and excluding fraud targeting government agencies and companies. Reports of such fraud increased at an estimated 6.8% rate annually during 2013-2019 and then increased to a 22.5% annual growth rate yearly during 2020-2021 in parallel with the large shift of workers and consumers to digital channels and greater use of technology during the pandemic.

“Our analysis revealed the cost of consumer fraud during the pandemic exceeded the level seen over six years prior to 2020,” said James Slessor, Accenture’s global lead for public safety. “With this type of crime growing so intensely, we urge public safety leaders and their partners to evolve and intensify efforts to combat the trend and reduce its impact on consumers, businesses and national economies.”

The report includes scenarios forecasting consumer fraud rates over the next five years. Under the most optimistic scenario, the annual growth rate of consumer fraud would fall to the pre-pandemic level of 6.8%. The most pessimistic scenario projects continued growth at the rate seen during the pandemic of more than 22%.

“We found that approximately 7% of the population across the countries we studied were affected by consumer fraud in the years preceding the pandemic, and that will increase by 2027 to 17% under the most optimistic scenario and 24% under the pessimistic outlook,” said Slessor. “It’s no longer a question of ‘will fraud continue to rise?’ but more a matter of how fast and how high, and the pressing need to better address the growth of this type of crime.”

Accenture’s report points to a range of activities that public safety agencies can consider elevating to counter consumer fraud. While countries and agencies studied were found to be at widely varying levels of maturity, in terms of their approaches and capabilities to fight fraud, the report offers a framework to build more effective operational response systems regardless of the current status of efforts within specific countries.

Areas of operational response to consumer fraud fall into three categories: collect and analyze intelligence, detect and investigate incidents of fraud, and (when possible) prevent and disrupt attempts before fraud occurs. The report calls out four areas of opportunity – citizens, partners, workforce, and technology – and offers guidance for steps to expand efforts in each area of opportunity across the breadth of operational response categories.

“In light of the fast rise and already massive extent of consumer fraud, we are calling for more of an intelligence-led, proactive and collaborative path forward,” Slessor added. “As consumer fraud becomes more intrusive, sophisticated and spans across borders, our call is to elevate efforts with a whole-ecosystem approach in which governments and many partners work together to innovate and deter fraud.”

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 699,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at accenture.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220404005027/en/

Joe Dickie

Accenture

+1 512 694 6422

joseph.r.dickie@accenture.com

Source: Accenture

FAQ

What did the Accenture report reveal about consumer fraud rates for ACN?

The report indicated that consumer fraud cases tripled from 2020 to 2021, with an annual growth rate of 22.5% during the pandemic.

How many countries were analyzed in the Accenture report on consumer fraud?

The report analyzed data from eight developed nations, including the US, UK, Canada, and others.

What is the projected impact of consumer fraud on the population by 2027 according to Accenture?

Under pessimistic scenarios, up to 24% of the population could be affected by consumer fraud by 2027.

What strategies does Accenture suggest for public safety agencies to combat consumer fraud?

Accenture suggests enhancing operational responses through intelligence gathering, incident detection, and proactive prevention strategies.

What was the annual growth rate of consumer fraud from 2013 to 2019 compared to 2020-2021?

The growth rate was 6.8% annually from 2013 to 2019, escalating to 22.5% during 2020-2021.