A majority of businesses are experiencing rising year-on-year fraud losses, often the result of an inability to recognize customers. This according to Experian’s annual Global Identity and Fraud Report released this week.
The report found that 57 percent of businesses are experiencing rising year-over-year fraud losses. And, while 95 percent of businesses are confident in their ability to identify and re-recognize their customers, more than half of consumers (55 percent) don’t feel recognized when doing business online.
“Creating the ultimate digital experience is a big focus for businesses, and it all boils down to being able to digitally recognize existing and potential customers accurately, seamlessly and consistently,” said Steve Pulley, Experian’s executive vice president and general manager of Global Identity & Fraud Solutions. “And while businesses think they’re doing a good job, fraud continues to be on the rise and consumers don’t feel like businesses know them. Businesses need to do a better job of using the same data and technology that’s being used to improve customer experiences to better identify customers and prevent fraud.”
Experian interviewed more than 6,500 consumers and more than 650 businesses across 13 countries for the research. Findings also reveal organizations are interested in advanced technology, with 86 percent looking to analytics to be a strategic priority and more than half of businesses across the globe looking to invest in AI.
“This demonstrates that advanced authentication methods, such as machine learning, device intelligence and biometrics, might be the key to successful re-recognition. In fact, a total of 81 percent of consumers across the globe view physical biometrics as the most secure form of identity verification,” said Experian in a release on the study.
Security A Consumer Priority
For the third year in a row, Experian said consumers cited security as the most important element of their online experiences. Seventy-four percent said security was their top priority, with convenience following closely behind.
“While consumers said they notice and like what businesses are doing to improve their digital experiences, such as personalized offers, the likelihood of them continuing a relationship with a business will come down to how secure and meaningful those relationships are,” said Pulley.