TL;DR: A comprehensive survey conducted by AI and analytics leader SAS has unveiled the extensive reach of consumer fraud, with 70% reporting at least one experience. Nearly half mentioned an increase in fraud incidents in 2022 compared to previous years. This surge in scams has led 86% to become more cautious. The study also highlights the preferred methods of initial contact by fraudsters, primarily through mobile phones and email.
A recent study by SAS, a leader in AI and analytics, based on responses from 13,500 consumers across 16 countries, has shed light on the prevalence of consumer fraud. Shockingly, 70% of respondents reported experiencing fraud at least once, with 40% falling victim to it multiple times. In a concerning trend, 47% noted an uptick in fraud cases in 2022 compared to previous years. This spike has led to 86% of individuals adopting a more vigilant approach towards fraud prevention.
Common Fraud Strategies Uncovered
The study identified attempts to acquire banking details and personal data as the most common fraud strategies reported by participants. Notably, mobile phones and email emerged as the primary communication channels employed by fraudsters to make initial contact, highlighting the need for increased vigilance in these areas.
Consumer Expectations Shift, Demanding Stronger Safeguards
Consumers are increasingly emphasizing the need for robust fraud defenses, with 89% stating that organizations should be more proactive in protecting against fraud. Encouragingly, most are willing to trade some convenience for enhanced safeguards. Three-quarters are open to longer transaction times for better fraud protection. Furthermore, 80% are willing to adopt biometric methods like facial recognition, hand geometry, retinal identification, or voice recognition for payments and transactions. Over half (57%) prefer using unique identifiers like biometrics for authentication at the time of transaction rather than relying on fixed passwords. Additionally, 70% expressed a willingness to share more personal data with service providers if it aids in bolstering anti-fraud measures.
AI: Striking the Balance Between Security and Customer Experience
With the surge in digital services, organizations face the challenge of providing fast, low-friction customer experiences while maintaining robust fraud defenses. A significant 86% of respondents anticipate continued or increased use of digital services. AI-enabled fraud detection emerges as a crucial solution, offering the potential to identify fraud earlier and more efficiently. This technology enhances real-time detection and prevention strategies, outperforming traditional rule-based approaches.
SAS’ Ongoing Commitment to Combatting Fraud
SAS’ recent announcement of a $1 billion investment in industry-tailored AI solutions underlines their dedication to combating fraud. According to Stu Bradley, Senior Vice President of Risk, Fraud and Compliance at SAS, layered fraud detection capabilities using advanced analytics technologies are crucial to staying ahead of evolving threats and ensuring customer loyalty.