1 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters 5 important reasons to protect your organization from fraudsters
1 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
5 important reasons to protect your organization from fraudsters
2 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
Are you protecting your organization from fraudsters?
Institutions are struggling to strike a balance between compliance requirements,
aggressive origination targets, dynamic and intelligently deployed fraud threats, and
delivering great customer service.
Finding the right strategy to address all of these concerns can be daunting, but not
nearly as concerning as failing to protect your customers and your institution.
Here are five important reasons why you need to protect your organization from
fraudsters now.
3 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
#5: Brand reputation
While the monetary cost of fraud losses can be
high, the impact of a loss or breach can have on
customer relationships and brand integrity can
be even higher.
A single incident can destroy the credibility built
over the years. Don’t let these fraudsters hurt
your customers, your brand and, in turn, hurt
your bottom line.
Did you know…
U.S. false declines are estimated
to reach $331 billion in 2018 – up
$96 billion from 2015.*
*Source: Aite Group
4 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
There are many fraud compliance requirements changing
the way organizations do business, including:
• Red Flags Rule requirements.
• USA PATRIOT Act checks, like AML or KYC/CIP.
• CFPB mandates.
• NIST levels of assurance in authentication.
• The myriad of other guidelines and rules.
With the right solution and approach to compliance, your
business can meet regulatory requirements, and leverage
your compliance efforts as a competitive advantage in the
marketplace.
#4: Compliance
Did you know…
Noncompliance costs 2.65X more
than investing in a technology-
based compliance solution.
5 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
Intrusiveness. Friction. Unnecessary login challenges.
False declines. Fraud mitigation is important, but so is
customer experience.
It is not uncommon for consumers to abandon a
transaction if the process is too cumbersome or leave
an institution completely when falsely declined.
The recipe for an effective fraud-authentication
strategy is striking the perfect yet dynamic balance—
between accurately identifying and segmenting likely
fraudulent customers and activities—and seamlessly
enabling the vast majority of legitimate customer
transactions.
#3: Customer experience
Source: Experian, 41st Parameter study
Did you know…
83% of consumers reported
feeling frustrated, upset or
even betrayed when declined.*
6 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
From financial performance and operations to the
lost revenue of good customers and the total cost
of acquisition — protecting your customers and your
institution is tied to the bottom line.
Fraud is not going away. Managing and mitigating
fraud risk and continuously monitoring performance to
adjust your strategies will enable you to be profitable
while ensuring everyone is protected.
#2: Profitability
Source: The Nilsen Report
Did you know…
Direct fraud losses totaled
$16.3 billion globally last year,
or nearly 5.7 cents for every
$100 in transaction.*
7 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
#1: Increased fraud and credit charge-offs
The fraud landscape is constantly evolving, with
schemes continuing to rise in sophistication. This
trend will continue, as personally identifiable
information continues to be readily accessible for
organized crime as well as willing participants in
first-party fraud schemes.
Your organization must evolve as well. That
evolution can be made possible through a
flexible, scalable and adaptable solution.
Source: Aite Group
grow to
Credit card
application
fraud losses*
$2.1B(2020)
grow to
$1.2B(2016)
U.S. DDA
application
fraud losses*
$694M(2020)
grow to
$466M(2016)
8 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
Protect the customer.Protect their experience.Protect your institution.
Customer experience Fraud prevention
9 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters
We can help you safeguard your business from fraud.
Let’s get started.
Call 888-727-8330
©2017 Experian Information Solutions, Inc. All rights reserved. Experian and the Experian marks used herein are trademarks or registered
trademarks of Experian Information Solutions, Inc. Other product and company names mentioned herein are the trademarks of their
respective owners. No part of this copyrighted work may be reproduced, modified, or distributed in any form or manner without the prior
written permission of Experian.
Experian [Public. Confidential. Internal. Restricted. – please choose the appropriate category]