APAC banks believe fraud cases will increase in 2019

Tuesday 16 April 2019 10:38 CET | News

A recent poll by FICO has concluded that 74% of Asia Pacific banks believe that cases of fraud in their country will increase in 2019.

Of specific concern are transactions completed when neither the card nor the cardholder is physically present (CNP fraud), as well as cards taken out by criminals under false identities (application fraud). These were identified as the two key concerns, as well as the biggest fraud challenges faced by banks in 2019.

The study found that efforts to keep up with changing fraud patterns remain mixed. Most APAC banks surveyed continue to take a precautionary approach to stopping fraud. More than 50% of APAC banks continue to simply block cards on the first fraud alert, a rate that remains unchanged from the 2017 survey. In contrast, 6% will keep the card open while trying to confirm fraud with the customer. 

Banks in the region are still measuring their fraud departments on key fraud metrics other than customer satisfaction. Overall fraud losses remain the leading indicator for 80% of APAC banks, followed by revenue at 10%.

Of the banks surveyed, 54% of respondents said there would be a moderate rise in fraud in 2019 while 20 percent said there would be a significant jump.

Identity theft also remained a key priority for four-in-ten banks. Last years survey found that for one in five banks the number of fraudulent applications for credit cards sat between five to 10%.

FICO surveyed 50 executives from financial institutions across the region at the annual FICO Asia Pacific Fraud Forum held in Bali, Indonesia.

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Keywords: banking, fraud, FICO, APAC, survey, study, CNP fraud
Countries: World

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