The global pandemic changed the way people in Southeast Asia live, work and conduct their business, as it did all over the world. For the region’s financial industry, it did not just mean adapting to the changing needs of employees and customers, but also to a growing threat of fraud, for which the usual tools and processes were found no longer to be sufficient.
According to recent research, up to one in three firms in Southeast Asia experienced online fraud in 2020 as the boom in online activities such as e-commerce and remote working triggered by the pandemic exposed the vulnerabilities of the digital economy. In real terms, this has translated to as much as 80 basis points of revenue lost by banks to fraud in the last year alone, Regulation Asia estimates based on aggregated data retrieved from Capital IQ and other sources.
Many institutions still see fraud as a mere cost of doing business, but now, more than ever, it’s critical for financial institutions to anticipate new fraud schemes in order to mitigate risk, prevent losses, and protect the consumer. To do this, they need to assess their readiness for managing online fraud risk, and tap advanced risk assessment tools that can help better safeguard their assets, while also promoting wider financial inclusion. As the pandemic unfolded and the operating landscape changed rapidly, some institutions managed these changes better than others. At a recent roundtable discussion convened by GBG and Regulation Asia, industry experts gathered to delve into the Southeast Asian fraud landscape and provide practical insights into the mitigation measures the industry can take to meet these emerging challenges.
To read the full report click on this link: The Future of Fraud Management