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The latest Asia-Pacific edition of the LexisNexis True Cost of Fraud study surveyed 387 risk and fraud executives in Malaysia, the Philippines, Singapore and Thailand who revealed that across APAC, fraud cost has increased from 2019 pre-pandemic levels.
The study analysed fraud trends in retail, e-commerce, financial services and lending industries. It spotlights key pain points related to new digital payment methods and transaction channels. LexisNexis collected data from February until March 2022 and survey questions reference the past 12 months.
According to Thanh Tai Vo, director of fraud and identity strategy at LexisNexis Risk Solutions, organisations are fighting a tough battle against fraudsters in "the new normal".
"Fraud is sophisticated and evolving exceedingly fast.
"We are seeing a high volume of fraud attempts following a continued shift towards digital channels spurred by the pandemic.
"This means businesses must integrate a fraud detection and prevention approach with both physical and digital identity attributes to enhance customer experience, stay competitive and avoid losses," Thanh said.
The study found the cost of fraud rose between 10 per cent to 16 per cent across APAC from a baseline of 2019 pre-pandemic levels. LexisNexis Fraud Multiplier determined that every US$1 lost to fraud costs the organisation an average of $3.99, compared to $3.50 in 2019.
The cost of fraud per transaction was higher than average, costing digital banks and alternative lenders $6.33.
BNPL, otherwise known as "buy now, pay later" facilities and digital wallets, cost businesses $4.75 for every dollar lost to fraud.
While in-person transactions remain the most popular point-of-sale channel, fraud occurs more in online channels than mobile channels. Within the mobile channel, 34 per cent of fraud occurs through mobile web browsers.
A recent cyber crime report revealed consumers made a significant shift to mobile transactions, which now accounts for 75 per cent of all transaction traffic globally. This indicates that fraudsters were in tune with the consumer behaviour shift brought on by the pandemic, by employing evolved strategies in response.
[Related: SMEs face fines for failing to report cyber attacks]
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