2025 Fraud Management Trends
- Date:November 07, 2024
- Author(s):
- Tracy Kitten
- Suzanne Sando
- Kevin Libby
- Jennifer Pitt
- Report Details: 11 pages, 3 graphics
- Research Topic(s):
- Fraud Management
- Fraud & Security
- PAID CONTENT
Overview
Innovation is the name of the game in 2025. Though the financial services industry is always working to develop the latest and greatest technology for fraud detection and prevention, there are more than a few opportunities on which financial institutions must get up to speed. As check fraud continues to plague FIs around the country, digital wallets will become a gold standard to replace checks in 2025. That said, fraud gaps in the digital wallet market must be addressed for non-main-player wallet providers to have a chance to compete against giants such as Apple, Google, and Samsung.
Shoring up fraud prevention doesn’t stop at digital wallets. As banks and credit unions aim for seamless and frictionless experiences for their customers and members, they must continue to provide the most robust security to accounts and identities. This means existing methods must be evaluated for their strengths and weaknesses, especially as account takeover fraud and imposter scams rise. One-time passcodes, once thought of as the pinnacle of multifactor authentication, have proved fallible.
Finally, as the economy and job market remain lackluster, opportunities for first-party or “friendly” fraud continue to increase. FIs must better distinguish the difference between legitimate fraud claims and friendly fraud, using rich consumer and transaction data to build robust fraud detection. This will improve transaction detail at the customer level and the overall digital banking experience for consumers.
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