Financial Firms Are ‘Comfortable’ Footing Fraud Bill

Nearly three-quarters of financial services firms are currently ‘comfortable’ absorbing the cost of fraud, according to new findings taken from The Future of Global Identity Verification research report from Entrust and Docusign.

This is unsustainable, particularly when the ‘cost’ of fraud does not relate to financial losses alone. Most banks (57%) and financial services firms (56%) report that fraud is harming brand value, while 54% of banks and 59% of financial services firms say it’s also damaging customer retention.

To prevent the rising instances of fraud, Entrust provides a complete Identity Security portfolio to prevent rising fraud across the entire lifecycle, by combining identity verification, authentication and digital signing.

The CX Cost of Fighting Fraud

In addition to rising fraud rates, financial institutions are balancing fraud prevention with delivering a seamless customer experience (CX). The research finds that 60% of banks and 53% of financial services firms say it is challenging to combat fraud without disrupting its customer experience. Similarly, 64% of banking and 59% of financial services express concerns that increasing fraud prevention steps in its online journey will frustrate customers or increase abandonment rates.

Furthermore, more than two-thirds (67%) of financial services firms acknowledge competing priorities over finding the right balance between preventing fraud and maintaining a positive CX.