to implement now
This report outlines strategies to reduce fraud in digital channels, without affecting the user experience.
Fraudulent activity within US financial institutions has been on the rise in recent years, particularly as more and more financial transactions take place online. Per Gartner, ”The cost of fraud to financial services firms and their customers is rising. According to LexisNexis’ The True Cost of Fraud Study, in 2021, the cost of fraud for U.S. financial services and lending firms rose between 6.7% and 9.9% higher than pre-COVID-19. During this time, online and mobile channels have become primary targets for fraudsters.”
So, how do financial institutions reduce fraud without impacting the customer experience? Gartner outlines two key strategies in this "Quick Answer: How to Reduce Digital Banking Fraud Without Hurting Customer Experience."
- "Focus fraud prevention strategies on reducing the total cost of fraud."
- "Align the strictness of authentication requirements to each customer's actions and risk profile."
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Gartner, Quick Answer: How to Reduce Digital Banking Fraud Without Hurting Customer Experience, Financial Services Business Leader Research Team, 18 August 2022
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