What’s on the Horizon for Battling Fraud and Reducing Risk?
The July 2024 Market Pulse webinar discussed recent trends around fraud, best practices for reducing overall fraud risk, consumer behaviors, and chargebacks for B2B and consumers.
Since the Market Pulse webinar is so dynamic, we want to ensure you do not miss one observation. Below, we recap the discussion from Scott Przybyla, Senior Vice President of Sales and Identity Fraud at Kount, an Equifax company, and Gaurav Mittal of Ethoca, a Mastercard company. In Part 1, learn about macroeconomic updates from Amy Crews Cutts, President and Chief Economist at AC Cutts & Associates, and, in Part 2, you’ll find consumer credit trends with Maria Urtubey, Equifax Risk Advisor.
BEST PRACTICES, BEHAVIOR, and FRAUD TRENDS
with Gaurav Mittal, Ethoca, a Mastercard Company, and Scott Przybyla, Kount, an Equifax Company
According to the panel discussion, fraud is currently one of the biggest threats to businesses and has risen steadily since 2023. Unfortunately, once fraudsters get into an account, they have the “keys to the kingdom,” meaning access to the personal information stored within that account. While one might think preventing fraud is as simple as putting up more roadblock for fraudsters, like multi-factor authentication, consumer experience often goes down with those same practices.
The panel explored various types of fraud that businesses often encounter, including issues like business bankruptcy, which can significantly impact how businesses operate day-to-day and over longer periods.¹ Included in fraud prevention are practices like credit delinquencies and payment disruptions. The goal is to enable businesses to focus more on improving customer experiences and driving revenue growth.
Fraud prevention is not an area to cut costs as trying to stop fraud often means rejecting more transactions — which can have a dire impact on sales and revenue. However, by listening to what customers need, businesses can actually fight fraud and boost revenue at the same time. Our panelists have proven that reducing fraud and disputes can actually make more money in the long run. In some cases, fraud has dropped to just a fifth of what it used to be, saving money across different industries. Fraud used to be seen as just a cost, but now there is evidence of real returns on investment for everyone involved.²
Even a 1% revenue increase can make a big difference for businesses of all sizes. By utilizing solutions that help manage risk without losing sales, businesses can reach goals like business growth by balancing risk and revenue, improving customer satisfaction, and boosting loyalty.² Collaboration between businesses, banks, and markets is key to understanding what works best and how they can all succeed together.
Having a solid strategy is key, and offering services that add value for your customers is one of the best ways to boost revenue. By addressing early signs of fraud and taking action, a business can grow.² Together, we can find solutions tailored to your needs and strengthen our partnership for mutual success.
STAY IN THE KNOW
You can register for upcoming webinars, find our monthly Small Business Insights, and explore our National Consumer Credit Trends Reports on the Market Pulse homepage. All the Equifax data and insights presented on our Market Pulse webinars and this blog are pulled directly from these reports.
In today’s dynamic economic landscape, forward motion is not just a strategy. It's a commitment to your customers. Challenging financial times require proactive planning, goal setting, and relentless momentum. To stay on top of all our insights and updates, make sure to follow the Equifax for Business LinkedIn page. Plus, don’t miss our Market Pulse podcasts, available wherever you listen to podcasts, where we will continue with more in-depth conversations on topics we have discussed here.
(c) Equifax Inc. 2024. The statistics provided in this blog are for informational and illustrative purposes only and are not intended to be used for any other purpose.
Sources:
Equifax data 2024