Global business trends to protect against fraud

Fraud threat solutions for the digital world

experian fraud report 2016 cover

Experian report, a fraud threat solutions guide

In July, Experian published its first annual global fraud report covering the convergence of growth strategies and fraud prevention. The report, Global Business Trends: Protecting Growth Ambitions Against Rising Fraud Threats, offers guidance for senior executives and fraud prevention professionals, offering suggestions on how the alignment of strategies for business growth and fraud prevention can help a business grow while managing risks. Read about the five trends to be aware of in order to mitigate fraud while allowing for an improved customer experience.

experian fraud report 2016 trend 1 right sized solutions

One size doesn't fit all

It’s time to move on from a one-size-fits-all approach that creates more customer friction than necessary. Instead, companies should apply fraud solutions that reflect the value and level of confidence needed for each transaction. This means right-sizing your fraud solutions to align with true fraud rates and commercial strategy.

experian fraud report 2016 trend 2 universal consumer

Take a walk in the consumer's shoes

Having a universal view of the consumer is the core of modern fraud mitigation and marketing. Achieving a universal profile of consumer behavior — beyond the traditional 360-degree view — requires access to a combination of identity data, device intelligence, online behavior, biometrics, historical transactions and more, for consumer interactions not only with you, but across other businesses and industries as well. Companies that translate this knowledge and use it to identify consumers can distinguish a fraudster from a real customer more easily, building trust along the way.

experian fraud report 2016 trend 3

Finding the perfect blend

In addition to using your own first-party data sources, companies need to participate in a blended ecosystem, working across businesses and even industries. Fraudsters have access to more data than ever before, including data traditionally used to verify identities, and they use that data to create an entire digital profile. Therefore, you can no longer get to the digital interaction data you need by managing the process in a siloed manner. Achieving an expansive view of the universal consumer requires multiple data sources working together.

experian fraud report 2016 trend 4 agility

Achieving agility and scale using service-based models

Today, more and more companies are choosing subscription-based systems rather than building in-house or implementing on-premise solutions. Continuous upgrades and the access to new risk logic that come with subscription models provide more agility and faster response to emerging threats, no matter how fast your volume grows or what products, channels or geographies you pursue.

experian fraud report 2016 trend 5 future proofing

Look to the future

Companies need access to a wide variety of traditional and emerging technologies and information sources to fill in knowledge gaps and blind spots where fraudsters try to hide. The ability to modify strategies quickly and catch fraud faster while improving the customer experience is a critical aspect of fraud prevention moving forward.

“There is a persistent mindset that fraud loss is just the cost of doing business,” said Steve Platt, global EVP, Fraud and Identity, Experian. “But as fraudsters evolve, those losses are climbing, and the status quo is no longer effective or acceptable. We all need to be as forward-looking in fighting fraud as we are in business operations and marketing, and a real understanding of consumers is critical for success.”

Copyright © 2016 IDG Communications, Inc.