“Not only are financial institutions challenged by traditional payment card fraud, there is growing pressures from retail banking fraud, e-banking, first-party fraud including fraudulent applications for new accounts such as mortgages, employee fraud, and of course the emergence of digital and mobile transactions which are still being defined. In addition, fraud in healthcare insurance and property & casualty (P&C) insurance continues to grow. These fraud challenges are global in nature, but have different maturity & severity levels across the different regions due to market dynamics.
I don’t think I’m alone in underestimating the scope and impact of fraud. I believe many in the industry continue to see fraud as a loss mitigation issue first, and perhaps a customer experience issue second. Some more progressive firms have flipped that order.
But fraud today represents something much bigger. Fraud is a brand wrecker. Any well-established firm can absorb the financial losses from a data breach or fraud attack. But how do you recover if a breach or attack alters the fundamental way the market – customers, partners, investors – view your brand and company?
From this perspective, even the name of this space – fraud – may be limiting. Should we be calling it enterprise fraud management? Enterprise fraud and security? Financial crimes? Cybersecurity?
Whatever we choose to call it, the truth is that all of us who fight fraud are in the brand protection business.”
Source: FICO Feedblitz