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Research shows rising levels of risk and cost as organisations fail to strike the right balance between effective fraud prevention strategies and providing a smooth customer experience to avoid significant costs in lost sales.
London, United Kingdom, 31 January 2017 – New findings from Experian highlight that almost half of CEOs (42%) in large enterprise businesses, now see fraud as the number one inhibitor to business growth after competitor activity.
A recent commissioned study conducted by Forrester Consulting on behalf of Experian, gauges opinion among nearly 400 CEOs and senior business leaders working right across Europe, the Middle East, and Africa. Research also shows many boardrooms don’t understand the critical balance intrusive fraud prevention and friction have on smooth customer experience and a seamless sales process. At the same time, the vast majority of businesses don’t believe their current fraud processes are effective.
It also reveals critical strategic gaps in analytics, data and fraud technology.
Many CEOs are aware of the pressing need to act fast amid fears traditional business models could be defunct within the next five years as they fail to consistently meet customer expectations and lose ground to smaller, digital-savvy competitors.
Charles Butterworth, Managing Director, Experian, EMEA, says: “Fraud represents a massive challenge for us all given its increasing complexity, brutally highlighted by current estimates predicting global losses are likely to top US$2 trillion by 2020.
“We have been investing for a number of years to grow our strengths in fraud in anticipation that it would become one of the biggest challenges facing our customers, which is recognised by both Forrester Consulting and Juniper Research. We’re at the forefront of the market as industry experts in fraud, data, analytics and online customer experience.
“We recognise the critical balance that needs to be struck between fraud prevention, online friction and customer experience, which is why we’ve invested in mobile and device recognition technology and has seen us recognised as a market leader. At the same time, we’re also working closely with thousands of businesses right across the globe to ensure they have balanced fraud strategies in place to meet the expectations of modern-day online consumers.”
The Forrester report adds: "The study revealed concerning gaps in best-practice approaches to fraud prevention are creating additional risk and cost in business.
"Around 42 per cent of C-level respondents have identified this as an inhibitor to success, ranking it behind increased competitor activity and above insufficient budgets. Yet 77% of respondents were not confident that their current fraud prevention strategies were effective.
"As a result, the tension arising from trying to deliver smooth customer experiences while mitigating fraud is palpable."
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Notes to Editors
• The research was conducted by Forrester which gauged opinion from 380 CEOs and senior business leaders and functional heads working across Europe, the Middle East, and Africa. It was carried out during August 2016.
• Juniper Research cites Experian as a leading player in the fraud detection space - Juniper Research Online Payment Fraud Strategies report - July 2016.
• Experian validated as leader in mobile fraud management - Vendor Landscape: Mobile Fraud Management Solutions - Forrester Consulting - June 2016.
Bobbie Ttooulis, Marketing Director EMEA-CSDA. - (0203) 042 4356, or (07814) 889288.
Experian is the world’s leading global information services company. At life's big moments – from buying a home or car, to sending a child to college, to growing a business by connecting it with new customers – we empower consumers and our clients to manage their data with confidence. We help individuals take financial control and access financial services, businesses make smarter decisions and thrive, lenders to lend more responsibly, and organizations to prevent identity fraud and crime.
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