Poland Grapples with Rise in Fraudulent Transactions Detection Challenges
As digital services become increasingly popular across Europe, cybercriminals are seizing opportunities to exploit consumers and businesses alike. In Poland, the situation is particularly concerning, with a staggering 52% of fraud cases originating from digital channels.
The True Cost of Fraud in Poland
A recent study conducted by Forrester Consulting on behalf of LexisNexis Risk Solutions revealed that the true cost of fraud in Poland has far-reaching consequences for organizations. According to the study, financial institutions and retailers incur fraud costs between three and five times the actual value lost to fraudsters, with an average cost of 4.19x the lost transaction value.
Top Challenges in Detecting and Mitigating Fraud
Organizations in Poland face several challenges when it comes to detecting and mitigating fraud:
- Balancing fraud prevention friction with seamless customer experience: Ensuring that anti-fraud measures do not compromise the user experience is a significant challenge.
- Difficulty understanding what solutions are needed: Many organizations struggle to identify the most effective fraud prevention solutions for their specific needs.
- Keeping up with constantly evolving trends and threats: Cybercriminals are always finding new ways to commit fraud, making it essential for organizations to stay ahead of the curve.
- Fragmented use of identity and transaction verification solutions: The lack of integration between different fraud prevention tools can create vulnerabilities.
Types of Online Fraud in Poland
Criminals are increasingly using stolen or synthetic identities to open new accounts, with nearly half of all losses attributed to fraudulent new-account creation. Other common types of online fraud in Poland include:
- Card testing
- QR code payment fraud
- Scams
- Crypto fraud
- Fake reviews and ratings
- Fraudulent chargebacks
- Promotion fraud/policy-abuse fraud
- Privacy concerns
Adopting a Comprehensive Approach to Fraud Prevention
The study emphasizes the need for organizations to adopt a comprehensive approach to fraud prevention, including:
- Identity and transaction verification solutions: Implementing robust identity and transaction verification solutions can help prevent fraudulent activities.
- Automated transaction scoring: Using automated scoring systems can help detect suspicious transactions in real-time.
- Geolocation tracking: Tracking the location of transactions can help identify potential fraud patterns.
- Browser/malware tracking: Monitoring browser behavior and malware activity can help detect fraudulent activities.
- Check-verification services: Verifying customer information before conducting transactions can help prevent fraud.
By adopting a comprehensive approach to fraud prevention, organizations in Poland can minimize losses and protect their customers from fraudulent activities.