2022 True Cost of Fraud™ APAC Study

Key findings from the study:

Fraud is becoming more insidious for a number of reasons, particularly the acceleration of the digital transformation. Use of mobile apps and wallets, along with contactless payments, align with increased fraud costs. With the added challenge of identity verification, particularly at the new account creation and login stage, some trends begin to emerge:

• Each market is battling significantly more fraud than before the COVID-19 pandemic, with financial institutions experiencing the sharpest increase.
  
• Consumer and merchant behaviours have shifted towards online and mobile transactions, including more remote channel use, more digital payment methods and more omnichannel focus.
  
• Buy Now, Pay Later (BNPL) apps account for just over one-tenth of payment method losses, which is disproportionately higher than the average volume of transactions through mobile apps.
  
• Identity verification is a common challenge across the customer journey, with the need for more real-time data and transaction tracking tools.

Identity verification and difficulty determining transaction origination are common challenges 

	The rise of synthetic identities		Inability to confirm origination location
	A surge in the move to new digital   payment methods		Limited access to real-time risk    assessment data and tools
	Increased volume of botnet attacks		Difficulty in balancing speed with    friction

Technology is key to detecting and mitigating fraud while minimizing friction. A multi-layered fraud defense approach, layering digital attributes, behavioral analytics and device assessment solutions is required at each phase of the customer journey and transaction channel to offer frictionless experience for genuine customers

Want to know more? Download the LexisNexis® Risk Solutions 2022 True Cost of Fraud™ APAC Study.