ASIA PACIFIC — LexisNexis® Risk Solutions released the latest Asia-Pacific edition of the LexisNexis® True Cost of Fraud™ Study, which surveyed 387 risk and fraud executives in Malaysia, Philippines, Singapore and Thailand. The study analyzed fraud trends in retail, ecommerce, financial services and lending industries and spotlights key pain points related to new digital payment methods and transaction channels.
The study found the cost of fraud rose 10% - 16% across APAC from 2019 pre-pandemic levels. The LexisNexis Fraud Multiplier™ determined that for every U.S. $1 lost to fraud costs the organization an average of $3.99, compared to $3.50 in 2019. The cost of fraud per transaction was higher than average, costing digital banks and alternative lenders $6.33. Other new payment channels, such as buy now pay later (BNPL) and digital wallets, cost businesses $4.75 for every dollar lost to fraud.
Fraudsters evolved tactics in parallel with the changes in consumer behavior brought on by the pandemic. A recent Cybercrime Report showed consumers made a significant shift to mobile transactions, which now accounts for 75% of all transaction traffic globally. While in-person transactions remain the most popular point-of-sale channel, fraud occurs more in online channels than mobile channels. Within the mobile channel, 34% of fraud occurs through mobile web browsers.Key findings from the True Cost of Fraud Study – APAC edition:
“Organizations are fighting a tough battle against fraudsters in the new normal,” said Thanh Tai, director of fraud and identity strategy, LexisNexis Risk Solutions. “Fraud is sophisticated and evolving exceedingly fast. We are seeing a high volume of fraud attempts following a continued shift towards digital channels spurred by the pandemic. This means businesses must integrate a fraud detection and prevention approach with both physical and digital identity attributes to enhance customer experience, stay competitive and avoid losses.”Methodology
The True Cost of Fraud APAC study surveyed 387 risk and fraud executives in retail, ecommerce and financial services/lending across Malaysia, Philippines, Singapore and Thailand. Data collection occurred during February/March 2022 and survey questions reference the past 12 months.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.