Despite the almost constant development of new defensive techniques, fraudsters are still making headway. New digital trust scores for some key Asian markets show the weakest links.
With 44% of the world’s financial services companies saying fraud has increased, and 47% claiming that online fraud is increasing, the 2018 Global Fraud and Identity Report developed by Experian makes grim reading for businesses and consumers. Furthermore, as 42% of the survey’s financial services respondents see card fraud rising, and 39% cite malware in online channels as a growing threat, the attack is seemingly coming from all angles.
Globally, 78% of retail banking and cards companies are most concerned about fraud but industry sectors such as consumer technology (75%), digital-only companies (70%), telecommunication firms (63%) and airlines (57%) are also facing a concerted effort by fraudsters.
With financial services companies at the forefront of many attacks, it is driving awareness of data quality. However, 39% of companies cited the lack of an overall data management strategy and siloed customer data as key impediments to implementation of a singular view of customers.
“Across the board, companies are seeing the scale and variety of fraud growing into 2018 and with customers expecting seamless and fast digital transactions, they require proactive measures to balance security and customer experience,” says Mohan Jayaraman, Regional Managing Director, Decision Analytics and Business Information, Experian Asia Pacific.
As part of its work in this area, Experian also publishes the APAC-focused Fraud Management Insights 2017 report. The survey, which covers ten regional markets, lists in order of threat the top five fraud types that companies should look out for in 2018:
Card fraud (including card not present fraud).
Malware in online channels.
Malware in mobile channels.
The current Experian Insights study also includes its Digital Trust Index. This reviews key variables (including levels of digital adoption, industry preferences and fraud rates, and the effectiveness of companies' fraud management capabilities) across industries and countries.
Although just a snapshot of consumer behaviour and expectations, the Index provides a view of the wildly differing levels of trust that consumers have for digital services in the region. Notably, financial services in New Zealand, Japan and Australia ranked highest in terms of digital trust, whereas Hong Kong, Thailand, Singapore and Indonesia ranked lowest.
The industry average was 4.95 out of 10 for the financial services industry, higher than the retail and telecommunications sectors with 2.40 and 2.14 regional averages respectively.
These averages indicate that there is still a long way to go before digital trust is at satisfactory levels across the board.
APAC digital trust scores by country
||Digital Trust Index Score
Source: Experian Fraud Management Insights 2017