10 April 2016

Asia Pacific companies expect more fraud in the next five years

Experian Asia Pacific’s flagship report, The Economics of Fraud: Mitigating Risk Amidst Fast Growth and Innovation, revealed that 59% of firms in Asia Pacific expect fraud to increase in the next five years, with over half of the surveyed firms (51%) indicating that they are spending more time and investment on fraud prevention.

The report from the data, analytical and marketing services provider takes a deep dive into the fraud landscape that businesses in Asia Pacific face today. Top-line findings around fast-growth markets from the report highlight that:

·         On a scale of 1-5 with 5 as the most concerned, across Asia Pacific, China (3.9) and Indonesia (4.6) are the most preoccupied with fraud as compared to mature markets like Australia and New Zealand, which ranked 3 and 3.1 respectively.

·         Telecommunications and financial services firms are the most concerned about fraud. Retailers are lagging – considering the growth and prevalence of e-commerce for consumers, particularly in China; this suggests an area for improvement.

·         According to the firms from financial services, fast-growth markets like Indonesia is at risk of credit application fraud (86%), while China (70%) and Malaysia (65%) are at risk of fraud that occurs due to online banking.

“Fortunately, many leading companies have fraud prevention measures in place, but these will need to be hyper-dynamic, constantly seeking to balance risk mitigation with minimising customer impact and intrusiveness. With the accelerating adoption of electronic and mobile commerce, fast-growth markets are now facing a greater number and greater variety of risks of attacks from fraudsters. The direct financial costs to companies across almost all industry segments are significant and the reputational exposure is even more immense,” said Jeff Price, Managing Director of South East Asia for Experian.

Top-line fraud prevention findings specific to Southeast Asia include:

·         Singaporean companies are the most likely to pass on fraud prevention costs to customers.

·         Malaysian companies are least reliant on external fraud prevention suppliers, a likely cause of their increased internal costs in fraud prevention measures.

·         Indonesian companies’ fraud prevention measures have a slight advantage against their Southeast Asian counterparts when it comes to the impact to a customer’s on-boarding process.

“The good news is that customers are not as affected by firms’ security measures. However, as fraudsters become more sophisticated, the onus is now on businesses to re-evaluate, reinvent and innovate their fraud prevention measures to stay ahead of fraud threats,” continued Price. “If achieved, the result would be the better capture of fraudulent activity whilst maintaining the level of trust between consumers and businesses.”


Download the Asia Pacific Fraud Report
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