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Financial Institution Fraud Prevention in Colombia Takes Center Stage

Bogota - A new study by LexisNexis Risk Solutions has revealed alarming figures regarding financial institution fraud prevention in Colombia.

Alarming Rates of Financial Institution Fraud Prevention

A staggering 65% of companies in the region reported an increase in fraudulent transactions over the past year. According to the LexisNexis True Cost of Fraud Study – Latin America, businesses in the region are bearing a cost of fraud that is 3.9 times the face value lost in fraudulent transactions.

Costs and Impacts

• In Colombia specifically, organizations incur an average cost of $3.76 for every peso lost to fraud.
• Digital channels account for 51% of overall fraud losses across Latin America, surpassing physical fraud for the first time.
• Cybercriminals are exploiting the anonymity of digital transactions to execute fast and untraceable fraud.

Key Findings

• New account creation emerges as the stage of the customer journey with the highest fraud losses, posing a significant challenge for financial institutions (46%) and retailers (44%).
• Criminals are using stolen or synthetic identities to open fraudulent accounts, taking advantage of the growing popularity of digital banking and commerce.

Recommendations

“It is self-evident that new forms of fraud increase the risk of financial losses for consumers and businesses,” said Rafael Costa Abreu, director of fraud and identity at LexisNexis Risk Solutions. “Preventing fraud requires a multi-layered approach throughout the customer journey.”

LexisNexis Risk Solutions recommends that organizations adopt forward-thinking fraud management and authentication solutions, leveraging cutting-edge technologies such as:

• Artificial intelligence
• Machine learning
• Biometric and behavior-based authentication methods

Download the Full Report

The full report is available for download on the LexisNexis website.