LexisNexis Risk Solutions’ 2021 True Cost of Fraud APAC study, released on Friday, covers the financial sector as well as retail and e-commerce in Australia, Hong Kong, India and Japan.
In the Australian financial sector, the average amount of fraud attacks attempted came in at 1,660, with 501 of those being successful. The average transaction of successful attacks, with the majority coming through rogue mobile app targeting, was reported as $6,235.
Particularly during the COVID-19 lockdowns, online and mobile app fraud attempts increased.
Identity verification has proved to be another factor in fraud within the financial sector in Australia. In regard to mobile fraud, the study reports a 54 per cent rise of synthetic identities, 58 per cent lack real-time third-party data and 39 per cent lack real-time transaction tracking.
The study also identified that financial institutions tend to have higher costs from fraud attempts given the heavy account-based nature of their business and the need to repay fraud losses to customer accounts.
“As fraudsters become more sophisticated and their methods more complex, businesses need a robust fraud and security technology platform that helps them adapt to a changing environment, offering strong fraud management while maintaining a low-friction customer experience,” LexisNexis Risk Solutions’ director of fraud and identity, Cameron Church, said.
“A successful fraud detection and prevention approach involves an integration of technology, cybersecurity and digital experience programs to address unique risks from different transaction channels and payment methods.
“High fraud costs impact ecommerce merchants, retailers and financial institutions as they increase each year – even without the influence of COVID-19.
“With sophisticated threats on the rise, taking a multi-layered solution approach has proven to be the most effective way to fight fraud across various channels and transaction types, as well as performing a more complete assessment that combines physical and digital identity data analysis.
“Using different solutions to support fraud detection at various points throughout the customer journey will strengthen a firm’s overall defense.”
