Research Says Financial Services Companies Could Do More to Fight Fraud

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New research released finds that frontline fraud fighters believe there’s much more to be done in the multi-billion-dollar battle against fraud, and provides financial services organizations with actionable recommendations to improve results.

In a new survey of fraud fighters, about eight in 10 respondents (81 percent) say financial services companies could be doing more to fight fraud, with more than a third (34 percent) citing new tools or services as the single-most-important investment an organization could make to manage fraud more effectively.

The research, from ID Insight and About-Fraud surveyed fraud investigators, managers and directors in late 2021 on their roles within financial services companies. Respondents cited multiple challenges they face in their fight to prevent fraud. Nearly two-thirds (65 percent) feel the technology that allows fraudsters to commit fraud is better than the technology their organizations are currently using to prevent it, and nearly half – 46 percent – say that they don’t have the tools or systems they need to prevent and stop fraud, with an equal number saying they don’t have access to important data for fraud mitigation until it is too late.

According to survey respondents, financial-institution customers play a large role in the fraud ecosystem, as well, with 86 percent reporting that customers make it easier for fraudsters to commit fraud.

At the same time, fraud fighters identified the most important investments organizations can make to improve results. Thirty-four percent cited new tools or services to combat fraud, 18 percent said the availability of real-time data, and 13 percent said more people added to the fraud team. Collaboration is also a key component of their success. Eighty-one percent of respondents collaborate or share insights and ideas with fraud fighters working at other institutions at least a few times a year, with one-third of those collaborating weekly or daily.

“Fraud fighters are financial services organizations’ most important resource, and this research was designed to better understand their unique and valuable perspectives,” said Jack Sundstrom, ID Insight chief product and marketing officer. “To our knowledge, this first-of-its-kind national survey is the only one to have ever sought the opinions of front-line fraud fighters, and it provides an important roadmap for organizations to improve their outcomes.”

“The findings of the survey are invaluable in understanding the type of information and services needed to support the ongoing success of the fraud-fighting community,” said PJ Rohall, co-founder of About-Fraud. “This research reinforces what we’ve experienced about fraud investigators’ commitment to their organizations and passion for delivering results that can save their companies and customers significant amounts of money and frustration.”

The survey delved into fraud fighters’ thoughts on why they do what they do, as well. Respondents are motivated by feelings of doing important work for their organization that makes a difference for customers and the greater good. Ninety-eight percent say they are performing an important role for their organization, and 97 percent believe they can prevent fraud from happening in the future. Ninety-five percent say they are willing to spend time outside of business hours learning about emerging fraud trends.

For more details on this research and the other resources and tools ID Insight provides to help financial institutions optimize their resources and reduce fraud, visit FraudFighterResearch.com.

Image licensed by pexels.com

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