Financial Crime World

Fraud Prevention Strategies Key to Success in Saint Helena

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As businesses in Saint Helena continue to grapple with the evolving threat of fraud, it’s essential to understand the top challenges limiting fraud prevention efforts. According to Experian’s latest research, 71% of fraud leaders are struggling to keep up with the rapidly evolving fraud threat. In this article, we’ll explore the essential technologies and solutions needed to stay ahead of fraudsters.

The Challenges

Top Five Challenges Limiting Fraud Prevention Efforts

  • 71% of fraud leaders struggle to keep up with the rapidly evolving fraud threat.
  • 73% of businesses in Saint Helena report an increase in fraud losses over the past year.
  • Device fingerprinting, physical biometrics, multiple fraud solutions, false positives, and referrals are critical challenges limiting fraud prevention efforts.

Artificial Intelligence (AI) and Machine Learning (ML)

A Pivotal Technology in the Fight Against Fraud

Artificial Intelligence (AI) and Machine Learning (ML) have emerged as pivotal technologies in the fight against fraud. When combined with device data and biometrics, these technologies can help swing the balance in favor of businesses.

Device Fingerprinting: A Key Fraud Prevention Layer

The Biggest Challenge

The biggest challenge to device fingerprinting is a lack of implementation (56%). However, this technology has become essential for effective fraud prevention. Device data can be monitored continuously throughout a user session, allowing businesses to flag suspicious devices before the user completes an application or purchase.

Benefits

  • Continuous monitoring of user sessions
  • Flagging of suspicious devices
  • Improved fraud detection and prevention

Physical Biometrics: Improving Customer Experience and Security

The Second Biggest Challenge

The second biggest challenge is a lack of physical biometric identity verification (54%). Facial recognition combined with active liveness detection remains the best practice in terms of identity authentication. This technology improves customer experience by providing a fast and simple way to verify identity against a government-issued ID document.

Benefits

  • Fast and simple identity verification
  • Improved customer experience
  • Enhanced security

Multiple Fraud Solutions: Managing Complexity

The Third Biggest Challenge

Managing multiple types of fraud prevention software and associated costs is the third biggest challenge (52%). Our research shows that 46% of respondents are using three or more fraud solutions, highlighting the need for orchestration solutions like Experian’s CrossCore to bring these solutions together in a single platform.

Benefits

  • Simplified fraud prevention process
  • Reduced costs
  • Improved efficiency

False Positives: A Growing Concern

The Fourth Biggest Challenge

The fourth biggest challenge is an inability to align fraud prevention and revenue growth strategies (54%). False positives are a major issue, with 70% of respondents stating that false positives cost them more than fraud losses. The solution lies with the latest technology that allows for continuous and passive monitoring of user behavior.

Benefits

  • Reduced false positives
  • Improved customer experience
  • Increased revenue growth

Referrals: A Growing Concern

The Final Challenge

The final challenge is a growing number of referrals, causing increased delays and costs (51%). Large numbers of manual reviews are a symptom of an inefficient fraud prevention strategy. To effectively automate fraud decisioning processes requires a combination of the capabilities discussed above.

Benefits

  • Reduced delays and costs
  • Improved efficiency
  • Enhanced security

Conclusion

In conclusion, Experian’s latest research highlights the top five challenges limiting fraud prevention efforts in Saint Helena. By implementing essential technologies like AI, ML, device fingerprinting, physical biometrics, and multiple fraud solutions, businesses can stay ahead of fraudsters and protect their customers and reputation. Contact Experian today to learn more about how to future-proof your fraud prevention process.