News in the Channel - issue #9

NEWS

cancelled. This cost organisations on average $4.4 million and forced 68% to push digital transformation goals back by more than three months l High expectations and hopes for creative modernisation projects: While there have been challenges, research showed that 38% of IT teams are focusing on tangible modernisation projects that will provide immediate results. Furthermore, 100% of enterprises have implemented or identified opportunities for creative digital transformation projects that seemed impossible at the end of 2021. This suggests that modern tech continues to

push the boundaries of what is possible for business transformation, drive innovation and inspire new next-gen apps. “It’s clear that IT and business leaders recognise the importance of investing in modernisation to drive transformation and achieve their short- and long-term goals efficiently,” said Ravi. “Organisations must make sure they are giving development teams the tools required to build modern, powerful and innovative applications to meet any use case in a cost- effective way. This will help them meet their customer demands faster and continue to maintain their leadership position.”

E-commerce fraud fast becoming a crisis for merchants across the globe E-commerce fraud is growing fast and

automation helps teams scale and frees up fraud investigators from mundane tasks enabling them to focus on informing product development, identifying other sources of profit erosion, and other more important strategic tasks that drive growth. With the economy in an uncertain place, enabling growth must become the priority.” Ravelin’s Global Fraud Trends 2023 survey also examined the most effective tools for fighting fraud. Machine learning and two-factor authentication (2FA) are being adopted more regularly by e-commerce businesses to help with the issue. Almost half (48%) of UK businesses say ML is one of the most effective tools in their arsenal, with 75% of UK merchants saying 2FA is crucial. From feedback across regions, the survey found that there isn’t a singular ‘one and done’ fraud strategy that’s most effective. Different solutions are effective at fighting different frauds, and having a robust tool stack allows teams to consider the complex nature of fraud. The survey, which spoke to 1,900 global fraud professionals, also examined the increase of ‘newer’ types of fraud that are prevalent globally. Policy abuse is experienced by 40% of businesses spoken to. The UK has the biggest problem with this type of ‘friendly fraud’ with 52% of merchants experiencing it. Reseller and bot activity sits at 53% globally whereas ‘fraud as a service’ schemes were an issue for 56% of those spoken to. Social engineering via customer service was experienced by 45% of the companies who took part in the survey.

financially impacting businesses across the globe, according to research from Ravelin. In the past 12 months, merchants have seen a huge leap in online payment fraud (up 59%), account takeover (51%), promotion abuse (52%), refund abuse (53%) and customer fraud/friendly fraud (40%). Merchants are now throwing more and more money at the crisis and expanding fraud teams in a bid to mitigate losses. Globally, 75% of all online merchants say fraud budgets will grow this year. In the UK, 62% will be spending more on managing fraud. This rises to 70% in France, 74% in Germany, 69% in the US and 84% in Canada. In the UK, 58% of online businesses polled plan to grow their fraud teams in the next 12 months. In other parts of the world, the trend is even more pronounced, with 80% of merchants in Germany, 72% in the US and 86% in Australia expecting teams to grow. But when it comes to tools for tackling fraud 78% of businesses opt for in-house solutions, which are expensive to maintain and quickly become unsustainable as a business grows. In the UK, the figure is 80% while in France it’s 81% and in Germany 77%. “Over the years merchants have built up fraud investigation teams which they’re justifiably proud of,” said Martin Sweeney, CEO of Ravelin. “But fraud continues to grow and mutate: simply throwing more people and money at the problem won’t make it go away. Losses will continue to grow. “Businesses need to get on the front foot managing fraud: using automation to nip fraudulent transactions in the bud. Better

Martin Sweeney CEO

ravelin.com

Download