High Cost of Fraud in Australia
Visit the iTWire Cost of Fraud Study to read more.
For every US$1 of fraud, Australian organisations end up paying US$3.51 in total costs.
That’s the disturbing finding of the 2021 True Cost of Fraud APAC Study conducted by LexisNexis Risk Solutions. Worryingly, this figure has increased from US$3.40 barely one year ago.
A combination of factors is driving up the actual cost of fraud, chiefly the challenge of identity verification. The factors hampering identity verification include:
- The rise of synthetic identities
- A surge in the move to new digital payment methods
- Increased volume of botnet attacks
- Inability to confirm origination location
- Limited access to real-time risk assessment data and tools
- Difficulty in balancing speed with friction
As the challenge of fraud becomes more complex, the study finds that various risks can occur at the same time with no single solution. This demonstrates the need for a multilayered approach to mitigating fraud, including the use of tools that can authenticate both digital and physical criteria, as well as identity and transaction risk.
Among the study’s recommendations are:
- Make use of technology: Organisations can no longer afford to rely solely on manual processes.
- Adopt a multi-layered fraud defence that includes near real-time event data.
- Integrate cyber security with fraud control processes to achieve greater effectiveness.
- Collaborate with other organisations to compliment your own intelligence.
Integrating eftsure into your accounting environment will help your organisation realise all these recommendations. Our unique fraudtech platform aggregates data from over 2 million Australian organisations, uplifting everyone’s intelligence capabilities, so it is much easier to identify potential fraud in real-time as you’re processing EFT payments.
Speak to eftsure today for a no-obligation demonstration of how our platform can help your organisation avoid the increasing cost of fraud.