The findings of the new report suggest that both businesses and consumers consider that maintaining a strong focus on fraud prevention and security measures remains paramount, especially in times of economic uncertainty. More to this point, almost two-thirds of the consumers surveyed expressed considerable or moderate apprehension regarding online security.
According to the official release, the top concerns that consumers expressed have to do with identity theft (64%), stolen credit card information (61%) and online privacy (60%).
From the business’ perspective, the report showcases that half of the enterprises surveyed expressed high levels of concern regarding fraud risks regarding areas like transaction fraud, cybercrime, and identity theft.
On top of that, 70% of businesses report that they have had increased fraud-related losses in recent years. As noted in the press release, authorised push payment fraud has emerged as the predominant form of fraudulent activity encountered by a substantial 40% of businesses.
However, they are expected to further accommodate consumer expectations. One example in this case has to do with the use of physical biometrics. While 85% of people say that they trust this authentication method, only 32% of businesses have expressed their intention to invest in the necessary technology to be able to extend this service.
Another key finding of the report has to do with the use of machine learning in fraud prevention. The new data shows that approximately 60% of businesses are either prioritising or actively seeking to incorporate machine learning capabilities into their strategies that aim to identify and prevent fraud. Moreover, the businesses that have already integrated the needed technology have expressed that they have high levels of confidence in its efficiency. Thus, it becomes apparent that fraud prevention has become inherently reliant on machine learning.
Methodology-wide, Experian’s 2023 Identity and Fraud Report is reportedly based on two surveys conducted in the US in March 2023.
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