In its new report The Forrester Wave™: Enterprise Fraud Management, Q1 2013, Forrester estimates that “globally, merchants are paying between $200 billion and $250 billion in fraud losses annually, while banks and financial services organizations are losing between $12 billion and $15 billion annually.”As a consequence of these significant losses Forrester has seen a dramatic increase in enterprise fraud management (EFM) solutions during the past several years; it’s become clear that current approaches can’t keep up with the volume of fraudulent activity or creativity of the fraudsters. Business owners are weary of heavy-handed antifraud practices, and fraud budgets are ballooning. Forrester estimates that fraud management budgets increased 10% to 15% in 2012.
Both the CEB TowerGroup and Forrester reports also put FICO in the top segment of enterprise fraud solutions providers. These reports reflect the importance of using technology to fight fraud across the channels.