UK organisations suffering from ‘fraud tunnel vision’, new research finds
Despite over half (56%) of UK organisations being affected by fraud, confidence levels in fraud prevention techniques is remarkably high, reveals research from Callcredit Information Group.
The Fraud & Risk report of 201 Fraud Prevention Managers and Directors, finds that a majority of businesses (75%) believe they are one step ahead of fraudsters, with a mere 13% feeling they are lagging behind them.
Faced with a myriad of internal and external cyber security challenges, it is not surprising that more than half of organisations have experienced fraud despite high confidence levels. Employee access to social media (43%) and bring your own device to work (BYOD) (35%) are cited as the two biggest obstacles to fraud prevention. Further challenges include skills shortages (31%), device proliferation (30%) and lack of investment in technology (29%).
The potential impact of the issue on the business’ bottom line can be significant, with two thirds (66%) of those affected reporting that the cost of fraud exceeded their annual cover provision by, on average, 23%.
John Cannon, Director, Fraud & ID, Callcredit Information Group, commented: “Whilst our research shows that UK organisations feel they are ahead of the fraudsters, there are other business pressures that can impact security. The expectation from fraud professionals today is that they should protect their business from fraud and cyber-attacks without impacting the customer experience. A balance which can be tricky to strike when faced with fraudsters who continue to use the latest technologies to perpetrate their crime.
“But, fraud professionals can also use technological advancements to their advantage through existing solutions which help maintain robust security channels without adding friction to the customer experience. When combined with consistent reviews of current fraud prevention capabilities, this not only allows businesses to demonstrate they are behaving responsibly, but also help minimise chances of being affected by fraud without damaging customer engagement.”
Research Methodology 201 Fraud Prevention Managers and Directors working in companies with over 100 employees completed an online survey in August 2016. The research was carried out by London-based research agency Loudhouse.