GBG Fraud Survey 2020
Foreword
Organisations want to grow and offer a smooth digital journey whilst ensuring they are protected from fraud. How do they strike a balance?
The variety and complexity of fraud is increasing across the board. Traditional processes are no longer fit for purpose as they are getting in the way of an organisation’s growth. Successful fraud management requires an intelligent way to both onboard the vast majority of ‘Good Customers’ yet also introduce appropriate friction and barriers to those ‘Bad Actors’ that present potential fraud risks.
To understand how Financial Services are tackling and optimising their fraud prevention efforts, GBG recently commissioned an independent survey of 900 fraud professionals across France, Germany, Italy, Spain and UK and is delighted to share the findings.
Carol Hamilton
Regional Director EMEAA
Key Findings
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93% of FIs agree that managing fraud losses is a key focus for business strategy and guidance
As expected the majority of respondents continue to experience fraud as a core challenge to their business that needs to be managed appropriately now and future-proofed.
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53% increase in scams
There have been notable increases in specific fraud typologies with scams, phishing, and third-party identity theft being the greatest challenges of 2020 and topping the highest growth areas, with scams seeing a 53% increase.
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36% find fraud checks of new customers challenging
Over a third of respondents said the most challenging phase of the customer journey for their institution in fraud detection and prevention is fraud checks of new customers in the application/digital onboarding process.
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96% show a desire to tighten fraud detection
There is a greater demand for AI and Machine Learning as 96% of respondents show a desire to tighten and improve fraud detection for their customers using these latest analytics approaches, which are described as ‘promising’.
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75% of respondents have either fully integrated fraud/compliance processes or are planning to in 2021
Both accurate decisioning and a superior customer experience are integral priorities for FIs seeking to optimise grow and manage their fraud & compliance risk. Increasingly, organisations are seeing value in converging fraud & compliance processes to tackle these priorities.