An Enemy-rich Environment
Driven by the rapid growth of ecommerce and the transition to EMV chip-equipped cards, the proliferation of card-not-present (CNP) transactions has created a marketplace that is ripe for cyber-criminals to exploit. Not that the fraudsters need new reasons. Their continuing innovation is what makes them such a challenge for companies to fight. And although the battle is still in its early stages, the CFO has no choice but to engage.
The Hidden Cost of Fraud
Well-aware that they are engaged in a sustained struggle against the fraudsters, finance executives also understand that their companies’ current strategies aren’t effectively curtailing the criminals. In fact, the majority of survey respondents are still open to looking for new approaches, in order to achieve an appropriate balance between boosting operating expenses and reducing fraud-related losses. Among respondents, 56% anticipate that their company’s fraud detection and assessment strategies will change in the next two years. It’s worth noting that this percentage climbed to 64% for companies that currently use only internal resources to detect and assess fraud.
They are also cognizant of the scope of the task they are confronting since it contains a hidden risk of robbing them of more than just dollars to the bottom line. In fact, the survey revealed that the evolving threat of fraud is forcing companies to adjust their own operating models. Among respondents at companies that derive more than 90% of their revenues from ecommerce, large numbers report that, in the past two years, the risk of fraud has interfered with their efforts to develop new products or services (53%) or to accurately project budget allocation or revenue (49%)—the core of the CFO’s role. The missed opportunities that come along with a lack of innovation and ability to forecast business performance may lead to a loss of their current competitive edge, stagnant business growth, and lost revenue.
This eBook about corporate finance will explore:
- The Hidden Cost Of Fraud
- Evolving Technology To Fight Fraud
- Will Using A Third Party Keep You Ahead of Fraudsters?