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Fraud Prevention Strategies in Czech Republic: A Must-Have for Businesses

As the digital landscape continues to evolve, so too does the threat of fraud. In the Czech Republic, businesses are no exception, with 71% of fraud leaders struggling to keep up with the rapidly changing fraud threat. However, new technology is also enabling better fraud prevention.

According to a recent survey by Experian, artificial intelligence (AI) and machine learning (ML) are now critical technologies in the fight against fraud, when combined with device data and biometrics, they can help swing the balance in businesses’ favour.

Top Five Challenges Limiting Fraud Prevention

In this article, we explore the top five challenges limiting fraud prevention in the Czech Republic and highlight which fraud solutions can fill these gaps.

Key Fraud Prevention Layers: ML, Device Data, and Biometrics

The graphic below shows the key fraud prevention challenges identified in Experian’s research with Forrester Consulting.

1. Device Fingerprinting

  • A lack of device fingerprinting (56%) is the biggest challenge limiting respondents’ ability to prevent fraud.
  • Device data can be monitored continuously throughout a user session, allowing businesses to flag suspicious devices before the application or purchase is completed.

2. Physical Biometrics

  • A lack of physical biometric identity verification (54%) is the second biggest challenge.
  • Facial recognition combined with active liveness detection is still the current best practice in terms of identity authentication.

3. Multiple Fraud Solutions

  • Managing multiple types of fraud prevention software and associated costs is the third biggest challenge limiting businesses’ ability to prevent fraud (52%).
  • Experian’s CrossCore solution brings multiple fraud solutions together in a single platform, reducing IT complexity and combining the output of each fraud check for a more holistic final decision.

4. False Positives

  • An inability to align fraud prevention and revenue growth strategies is the fourth biggest challenge, with 70% of respondents stating that false positives cost them more than fraud losses.
  • Legacy rule-only approaches are no longer sufficient, and businesses need to look at the latest technology that allows for continuous and passive monitoring.

5. Referrals

  • A growing number of referrals causing increased delays and costs is the final challenge (51%).
  • Large numbers of manual reviews are a symptom of an inefficient fraud prevention strategy, and businesses need to automate their fraud decisioning process using ML-powered solutions that use device and biometric data.

Future-Proof Your Fraud Prevention with Experian

Experian’s fraud prevention and orchestration solutions are at the cutting edge of fraud detection technology. As the fraud threat mutates, our solutions continually adapt to help businesses keep pace and protect their customers. Contact us today to speak to a local representative and find out how to future-proof your fraud prevention process.