Kount, an eCommerce solution specializing in AI fraud prevention techniques, released a new report ‘Protection Digital Innovation: Emerging Fraud and Attack Vectors’. Javelin Strategy, a consultancy, researched and produced the report.
The report provides new data and analysis about how different verticals across the entire global economy currently handle threats. It also explores the need to balance effective fraud prevention with maintaining frictionless customer experiences.
“Innovative businesses—both retailers and financial institutions—that disrupt their industry are also facing the most complex fraud mitigation strategies as criminals rapidly deploy new tactics to steal consumer identity and payment data,” the report states. “Over 40% of companies that perceive themselves as highly mature in the market find that fraud prevents their advancement in business. Mix in competitive threats and growing expectations of frictionless commerce from consumers, and the challenges are rising.”
The report analyzes reported plans by respondents for investments in digital innovation in 2020. In addition, it covers a number of specific threats faced by specific industries and the ways merchants report trying to combat them. Data is included from sectors including retail, insurance, food/beverage, and more.
In addition, to these industry-specific threats, the report also makes general recommendations for reducing fraud in the new year. Specifically, it stresses the need for new fraud prevention technology and technique adoption in three key areas — operations, user experience, and fraud mitigation — and provides recommendations for how to accomplish that goal.
“Wherever new digital services are deployed in an effort to provide new ways for businesses and consumers to engage, criminals are eager to find new ways to exploit the capabilities,” the report states. “Successfully navigating digital innovation initiatives while continuing to protect customer accounts requires a concerted effort within enterprises to assess risk and align controls from Day 1.”