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Over the coming year and beyond, financial institutions should expect to see criminal behavior and fraud evolve.
Fremont, CA: As online activities and transactions have grown more accessible and easy over the last several years, people have slowly shifted to a digital-first way of life. Financial institutions have placed a large emphasis on enhancing their digital customer experience to attract and retain online audiences, particularly during the COVID-19 pandemic.
However, as consumers and organizations become more accustomed to navigating the internet world, fraudsters are increasingly effective at exploiting these online trends. According to a report, identity fraud and identity fraud scams will cost 56 billion dollars in 2022, with a considerable increase in identity theft frauds. Over the coming year and beyond, financial institutions should expect to see criminal behavior and fraud evolve. One of the greatest ways for enterprises to protect themselves and their users is by staying on top of the current fraud and fraud detection developments.
•Higher client turnover from poor fraud resolution experience
Communication is essential for improving the customer experience regarding fraud resolution and fraudulent activities. Customers can get better informed about how their identity fraud gets handled if businesses are more open with them. Financial service providers can provide material on their customer-facing channels that explain how to deal with fraud and what to expect when a claim is processed. A customer notification procedure may also get set up, utilizing current account alert technologies through email and SMS/text. It will assist in defining expectations and prevent assumptions about what both parties require to reach the most efficient and successful conclusion.
• Rising consumer confidence in biometric authentication
By utilizing continuous biometric authentication to reduce fraud risk, businesses may create greater confidence in their consumers. To assist in continually validating transactions, these fraud security measures may be employed from beginning to finish across all digital platforms. Utilizing device trust, identification, and behavioral analytics can stop any fraudsters who can penetrate inadequate password management.
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