News

FIs to funnel spending into fight against digital channel fraud

November 20, 2017

Mobile and online are emerging as financial institutions' most convenient and least expensive delivery channels, but both face a major challenge: fraud.

As a result, more than three-quarters (79 percent) of large financial institutions in North America expect an increase in technology over the next one to two years to mitigate against digital channel fraud migration, according to new research from Aite Group.

According to Digital Channel Fraud Mitigation: Evolving to Mobile-First, legacy forms of authentication simply are not sufficiently effective against constantly morphing digital threats.

"Each FI has a unique strategy to authenticate customers and ensure applicants are who they claim to be; reliable authentication is the foundation of effective fraud prevention," Aite Group Senior Analyst Shirley Inscoe said in a press release announcing the report.

Between July and September, Aite Group conducted phone interviews with 28 fraud and digital channel executives from 19 North American FIs holding more than $25 billion in assets. The resulting report,Digital Channel Fraud Mitigation: Evolving to Mobile-First, is a refresh of research published by Aite Group in 2015 and is part one in a two-part series.