Experian, the dedicated information services company, has published its first annual global business report covering the convergence of growth strategies and fraud prevention. Entitled ‘Global Business Trends: Protecting Growth Ambitions Against Rising Fraud Threats’, this thought-provoking document is designed as a guide for senior executives and fraud prevention professionals alike, offering new insights on how the alignment of strategies for business growth and fraud prevention can help today’s organisations enhance their revenues while at the same time effectively managing the myriad risks posed.
The report duly identifies five major trends that businesses should note and act upon in order to mitigate fraud. First, it’s time to move on from a ‘one-size-fits-all’ approach that creates more customer friction than is necessary. Instead, companies should apply anti-fraud solutions that reflect the value and level of confidence needed for each transaction. In essence, this means ‘right-sizing’ those fraud solutions such that they align with true fraud rates and commercial strategies.
Second, achieving a universal profile of consumer behaviour beyond the traditional ‘360-degree view’ requires access to a combination of identity data, device intelligence, online behaviour, biometrics, historical transactions and more for consumer interactions not only with the host company, but also across other businesses and industries. Organisations translating this knowledge and using it to identify consumers can distinguish a fraudster from a real customer far more easily.
Third, as well as using their own first-party data sources, companies need to participate in a blended ecosystem, working across the business spectrum. Fraudsters now have access to more data than ever before, of course, including that which is traditionally employed to verify identities, and they invariably use that data to create an entire digital profile. In today’s world, achieving an expansive view of the universal consumer requires multiple data sources working effectively in tandem.
Fourth, more organisations are choosing subscription-based systems rather than building in-house solutions. Continuous upgrades and the access to new risk logic that comes with such models realise more agility and faster response to emerging threats, no matter how fast the volume grows or what products, channels or geographies are readily pursued.
Last, but by no means least, companies need access to a wide variety of traditional and emerging technologies and information sources to fill in knowledge gaps and those ‘blind spots’ where fraudsters attempt to hide. Going forward, an ability to modify strategies quickly and catch fraud faster while improving the customer experience will be a critical aspect of fraud prevention.
“There’s a persistent mindset that suggests fraud loss is simply the cost of doing business,” observed Steve Platt, global EVP of fraud and identity at Experian, “but losses are climbing. The status quo is no longer effective or acceptable.”
There’s a need, then, for firms to be as forward-looking about fighting fraud as they are in business operations and marketing.
Business growth and fraud prevention simply must converge.