Merchants, service organizations, government agencies and financial institutions face the undeniable reality that transactional fraud is increasing. In one glaring example of this trend, data shows that the percentage of total revenues retailers are losing to fraud has tripled in the three years since 2013.
One of the more vital questions confronting the managers of public-facing operations today is – how can we grow and expand our operations while mitigating fraud and retaining customer satisfaction and loyalty?
Businesses are losing an increasingly larger percentage of their revenues to fraud year over year. In fact, in 2013, this number was only 0.51% of revenues, meaning that losses from fraud in 2016 are nearly triple the losses experienced just three years ago.
Large eCommerce (online) and mCommerce (mobile) operations are forced to deal with increasing fraudulent activity in a number of key areas, including:
• an increased volume of successful fraud attempts,
• a rise in dollar losses per fraudulent event, and
• a bigger bite of fraud costs as a percent of annual revenues
As eCommerce and mCommerce transaction volume increases, companies will be forced to handle a greater number of suspicious or questionable purchases, making manual processes impractical and forcing organizations to adopt automated detection systems.