Regional study shows that global digitalization and the drive towards customer obsession has its costs: increased fraud and bottom line impact.
In a recent LexisNexis Risk Solutions survey of 360 businesses across the Asia Pacific retail, e-commerce and financial services markets of Indonesia, Malaysia, the Philippines and Singapore, it was found that an average of almost 400 successful monthly fraudulent transactions occurred from June to August 2019.
The cumulative value of these fraudulent transactions averaged US$160,000 monthly. Costs incurred by businesses for fraudulent transactions include, but are not limited to, the lost transaction value for which firms are held liable, costs for replacing or redistributing lost or stolen merchandise, fees and interest paid to financial institutions, labor costs for investigation, and external costs for expense recovery.
The 2019 APAC LexisNexis True Cost of Fraud study explored the current fraud trends in the Asia Pacific retail, e-commerce and financial services markets, providing insights and recommendations that will help these businesses manage the cost of fraud, while growing revenue and strengthening customer trust and loyalty.
Study data was collected online and by phone from June to August 2019 by surveying risk and fraud decision-makers in Singapore, Indonesia, Malaysia and the Philippines.
Said Alisdair Faulkner, chief identity officer, Business Services, LexisNexis Risk Solutions: “Fraud is a significant issue for APAC businesses, especially for the financial services industry and for businesses that engage in mobile commerce. The digital space is where the battle against fraud is heating up, with the report highlighting identity verification as a key challenge for digital businesses and businesses selling digital goods, which accounts for nearly half of all retail and e-commerce fraud losses.”