New Report Reveals Fraud Management Is Vital to the Business Strategy of Most Organizations

Rhea-AI Summary

Telesign sponsored a study revealing that 92% of organizations view fraud management as crucial for their business strategy. Despite the emphasis, 53% of executives admit their companies have significant gaps in fraud mitigation efforts. The study shows that account takeover (50%) and phishing (45%) are top concerns, while nearly 65% of organizations report consistent or increasing fraud attempts. Additionally, fraud costs globally exceed $5 trillion annually. Notably, 43% have not increased their fraud prevention budgets, despite rising challenges.

Positive

• 73% of respondents identified multi-factor authentication as a highly effective fraud prevention measure.
• 52% considered AI and machine learning technologies as beneficial for combating fraud.

Negative

• 53% of organizations admit to having gaps in their fraud mitigation.
• 43% of respondents did not increase their fraud prevention budget despite rising fraud attempts.
• Fraud is costing businesses over $5 trillion annually, indicating a severe impact on financial health.

Companies are most concerned about account takeover, phishing, new account fraud and fake users, according to study sponsored by Telesign

LOS ANGELES, Aug. 11, 2022 (GLOBE NEWSWIRE) -- For the vast majority of organizations (92%), fraud management is either extremely important or somewhat important to their overall business strategy, according to a new study conducted by Gatepoint Research and sponsored by leading digital identity firm Telesign.

The report, which explores the fraud management strategies of business executives and decision makers across corporate America, also found that a majority of respondents (53%) admit their organization has gaps in their ability to mitigate fraud, rating themselves as somewhat to very ineffective.

“Fraud management is vitally important because it increases confidence in your organization,” said Joe Burton, CEO of Telesign. “With so much of our daily lives conducted online, fraud prevention is now a critical component for business success. People trust the platforms they use to be safe, and they blame the brand if that trust is violated.”

Fraud continues to plague organizations

When asked what fraud schemes or tactics were of top concern to their business this year, 50% of respondents cited account takeover, followed by phishing at 45%, new account fraud at 38%, and fake users at 21%.

The report also found that the battle against fraud is unrelenting. Nearly two-thirds of respondents (65%) revealed that the number of fraud attempts at their organizations either stayed the same or increased by 25% or more over the last year.

Surprisingly, even in the face of security gaps and rising fraud attempts, a high number of those surveyed (43%) have not added to their fraud prevention budget, while just 29% of respondents increased their fraud prevention budget this year.

Challenges remain when fighting fraud

Fraud is now costing businesses and individuals across the world more than $5 trillion annually. Bad actors are getting more and more sophisticated, so putting in measures to stop fraudsters and mitigate attacks is crucial.

When it comes to fighting fraud and fraud prevention, multi-factor authentication has had the most significant impact by far, with 73% of respondents citing it as their top preventive technology. Also effective, say 52%, are AI and machine learning technologies, followed by digital identity verification at 40%.

Organizations feel as though they are fighting an uphill battle when minimizing fraud. Over 60% of the respondents cited lack of customer awareness as their biggest challenge against fraud. This was followed by quickly evolving fraud tactics at 56% and the fact that fraudsters have greater access to customer information on the internet, cited by 40% of respondents.

For more information, download the complete report here or learn more in this newly published whitepaper by Telesign.

About Telesign
Telesign provides continuous trust to leading global enterprises by connecting, protecting, and defending their digital identities. Telesign verifies over five billion unique phone numbers a month, representing half of the world’s mobile users, and provides critical insight into the remaining billions. The company’s powerful AI and extensive data science deliver identity with a unique combination of speed, accuracy, and global reach. Telesign solutions prevent fraud, secure communications, and enable the digital economy by allowing companies and customers to engage with confidence. Learn more at www.telesign.com and follow us on Twitter at @Telesign.

Media Contacts
Lauren Ward, Senior Manager of PR
Telesign
lward@telesign.com
+1 310-227-9801

FAQ

What are the main fraud concerns identified in Telesign's study?

The study highlights account takeover (50%), phishing (45%), new account fraud (38%), and fake users (21%) as top concerns.

How many organizations consider fraud management important according to the Telesign study?

92% of organizations deem fraud management as extremely or somewhat important for their business strategy.

What percentage of companies reported an increase in fraud attempts in Telesign's study?

Nearly 65% of respondents reported that the number of fraud attempts either stayed the same or increased by 25% or more.

What technologies are considered effective in fraud prevention according to the Telesign report?

Multi-factor authentication (73%), AI and machine learning (52%), and digital identity verification (40%) are viewed as effective technologies.

What challenges do organizations face in combating fraud based on the Telesign study?

The biggest challenges include lack of customer awareness (60%), evolving fraud tactics (56%), and fraudsters' access to customer information (40%).