Sift is the leader in Digital Trust - Safety. The company has taken their extensive knowledge to compile an insightful report detailing the impact of payment fraud on business growth.
The Digital Trust - Safety Index report contains a variety of statistics, insights and case studies to help businesses discover better solutions and help them get ahead of payment fraud.
The report found that the increased complexity of fraud and bot-based attacks drove attempted payment fraud up 23% across the Sift network from 2020-2021. Those committing fraud are becoming increasingly more aware and alert of ways to compromise payment, and businesses need to be one step ahead of the game to be able to prevent serious attacks.
Automation is changing the way companies work, especially when it comes to secure transactions, and with an increase in advanced technology, there is also more opportunity for risk. The cloud opens up avenues for threats in ways we have never seen, so it is crucial to be prepared.
Data from the report comes from Sift's global merchant network of over 34,000 sites and apps. It is also compiled from the survey results of more than 1,000 consumers, who were questioned as to if they've experienced payment fraud and how it influences their buying behaviour and their choice of brands.
Shockingly, nearly half of respondents (49%) surveyed reported that they'd fallen victim to payment abuse over the past one to three years, with 41% of this group falling victim in the past year alone. It is clear that without proactivity and guidance, the risk is real, and business growth can be severely impacted.
One of the main problems caused by fraud in any business is impacted customer trust. Particularly when dealing with finance and payment, it can lead to negative situations that impact brand and customer relations, sometimes in a long-lasting way.
With companies introducing technology such as digital wallets and online payment, any type of breach will create a bigger chance of customers losing faith in the system and, ultimately, the brand. With many fintechs looking for new ways to innovate, it's up to security and IT professionals to understand the risks involved and have the proper safety systems and protocols in place.
So what can businesses do to be prepared? The report gives helpful insight and guidance and believes that security teams need to take a hands-on approach early to stop fraud. Having an end-to-end, flexible approach, backed by a network of billions of fraud signals, helps businesses streamline fraud operations and maximise their revenue potential.
Sift has also initiated its new Fraud Intelligence Center, which investigates fraud data and trends that help merchant risk teams learn about cybercriminals and how they leverage the Fraud Economy to target businesses and consumers around the globe.
This helpful service can provide further expert guidance and help promote communication between organisations, so communities are up to date with the latest news and advice.