Fraud remains a significant problem for financial services to solve, especially as digital and online banking becomes more prevalent in the industry. For the average FI and online lender, approximately one-third of all monthly transactions will be fraudulent.
This is according to the 2017 True Cost of Fraud survey by LexisNexis Risk Solutions, released last week. The survey of nearly 2,000 executives in risk and fraud found that identity fraud is a significant threat for FIs and lenders, especially those that are using primarily digital or online solutions.
About 31% of transactions per month for financial service companies are fraudulent, the study found (based on the average number of transactions an FI completed per month being 1,672, and the average number of reported fraudulent transactions being 519 for that month).
For online lenders, 36% of monthly transactions are fraudulent, with an average of 2,457 monthly transactions (877 of which are fraudulent).
For e-commerce businesses, credit card fraud was much more prevalent than identity fraud, the survey found.
Take a look at the full survey here.