According to the 2023 LexisNexis True Cost of Fraud Study – Asia Pacific, fraud is on the rise for 54% of Indian organizations year-on-year, with digital channels accounting for more fraud losses in the region than physical channels. The study reveals that businesses in APAC now bear a cost of fraud that is nearly four times the face value lost in fraudulent transactions. The average cost of fraud for Indian organizations amounts to ₹4.00 for every Indian rupee lost.
The rapid adoption of digital payments has improved payment experiences but also exposed systems to innovative fraud attacks. In APAC, digital channels now contribute to 51% of overall fraud losses, surpassing physical fraud. Cybercriminals are exploiting the anonymity of digital transactions and using technology such as AI to target consumers and businesses. The study also highlights the evolution of criminal tactics, with new account creation being the stage of the customer journey with the highest fraud losses in APAC.
Cameron Churchdirector, fraud and identity, APAC at LexisNexis Risk Solutions, emphasizes the need for a multi-layered approach to prevent fraud throughout the customer journey. The study underscores the significant impact of fraud on customer satisfaction and conversion rates, with 77% of Indian respondents citing a negative influence on customer satisfaction. The report also highlights the importance of evolving fraud management practices to combat the dynamic nature of criminal behavior.
Organizations are urged to embrace forward-thinking fraud management and authentication solutions, leveraging technologies such as AI, machine learning, and biometric authentication methods. The True Cost of Fraud Study – Asia Pacific surveyed 382 fraud management decision-makers at financial institutions and retail companies in APAC, including 79 in India. Data collection and survey questions reference a 12-month period, providing valuable insights into the current state of fraud in the region.
For more information on the True Cost of Fraud Study – Asia Pacific, download the report from the LexisNexis website. LexisNexis Risk Solutions is a global provider of data analytics and technology solutions that help businesses and governmental entities reduce risk and make informed decisions. Stay informed about the latest trends in fraud management and cybersecurity risks by visiting the LexisNexis Risk Solutions website.
Media Contact:
Ade O’Connor
+44 7890 918 264
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For media inquiries or further information, please contact Ade O’Connor at +44 7890 918 264 or visit the LexisNexis Risk Solutions website. Discover how advanced technologies and data analytics can help organizations combat fraud and improve decision-making processes.
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