Manage the Investment: Maximizing Budgets for Fraud Prevention

Viewed as trusted leaders, financial institutions cannot afford to scrimp on investments in fraud prevention, identity verification, and authentication. Being strategic and judicious in budget allocation is a crucial aspect of planning for road map initiatives, especially when budgets are tight. Fraud is a certainty in the financial services industry, and cybercriminals have successfully varied their methods to thwart existing fraud strategies. Identity fraud losses increased 19% in 2024, reaching more than $27 billion. The financial services industry must make significant changes to immediately alleviate the strain of fraud on financial institutions and consumers. 

Though the annual budget allocation for fraud prevention, identity verification, and authentication is smaller than desired, FIs should still take the opportunity to reassess their existing fraud prevention investments and ensure they are capitalizing on the most effective fraud and risk mitigation strategies that fall within their budgets.

Foreword

This report, sponsored by Galileo, examines the various fraud typologies affecting the financial services industry, the limitations of existing fraud prevention solutions, and the critical drivers for purchasing innovative technology. It provides recommendations for strategic investments in the most robust and advanced fraud prevention and authentication solutions. Javelin Strategy & Research maintains complete independence in its data collection, findings, and analysis.