Despite over half (56pc) of UK organisations being affected by fraud, confidence in fraud prevention techniques is remarkably high, a survey of 201 fraud prevention managers and directors suggests. A majority of businesses (75pc) believe they are one step ahead of fraudsters, with a mere 13pc feeling they are lagging behind according to the study by Callcredit Information Group.
Faced with internal and external cyber security challenges, it is not surprising, the credit referencing company says, that more than half of organisations have experienced fraud despite high confidence. Employee access to social media (43pc) and bring your own device to work (BYOD) (35pc) are cited as the two biggest obstacles to fraud prevention. Further challenges include skills shortages (31pc), device proliferation (30pc) and lack of investment in technology (29pc).
The potential impact of the issue on the business’ bottom line can be significant, the firm adds, with two thirds (66pc) of those affected reporting that the cost of fraud exceeded their annual cover provision by, on average, 23pc.
John Cannon, Director, Fraud and ID at Callcredit, said: “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.”
Methodology
The survey was of 201 fraud prevention managers and directors working in companies with over 100 employees who completed an online survey in August 2016. The research was carried out by London-based research agency Loudhouse.
About Callcredit
In 2011 the software analytics and counter-fraud product company launched Noddle (www.noddle.co.uk), a free-for-life credit reporting and scoring service. Visit www.callcredit.co.uk.
