Market Trends in Digital Fraud Mitigation

The latest Aite Group report finds that fraud executives are under extraordinary pressure to balance client experience and loss mitigation.

Boston, December 19, 2019 — The global trend to digitize banking services plays as important a role as ever in North American banks’ strategic priorities, and efforts to expand digital sales and service platforms are still accelerating. But as financial institutions continue to aggressively expand these digital sales and service platforms, including innovations in payment services, they’re inadvertently creating vulnerabilities that are fueling the growth of financial crime. And while a wider variety of powerful security solutions is available than ever before, not all banks are prioritizing investments in those security solutions as highly as investments in expanding digital sales and service platforms. Aite Group’s new report, Market Trends in Digital Fraud Mitigation, analyzes market trends impacting how large financial institutions are balancing security and the client experience as they navigate the expansive digital transformation initiatives that are common across the industry today. 

“Fraud executives are expected to reduce fraud losses while simultaneously making significant improvements to client experience, and with rigorously scrutinized budgets,” states Trace Fooshee, senior analyst at Aite Group. “In parallel with these objectives, these fraud executives are expected to manage a variety of processes that are, for many FIs, still largely manual, within increasingly restrictive compliance requirements—all of this despite double-digit growth in fraud attack rates and losses and a constantly expanding and ever-evolving digital surface area to defend and protect,” he explains.
 
This report examines the drivers behind digital fraud trends, the challenges that fraud executives face in controlling digital fraud, and how those drivers and challenges affect fraud-protection investments in digital channels. It is based on a survey of 20 fraud and digital channel executives from 18 North American FIs conducted from July to October 2019 as well as telephone interviews and follow-up emails. 

To request a press copy of this report or to speak with Trace Fooshee about this topic, please contact us at pr@aitegroup.com.

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

Press Contact:
Siobhan Scanlan
Public Relations
+1.617.398.5064
PR@aitegroup.com

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