2018 Fraud Operations Study

2018 Fraud Operations Study


Fraud is ugly. And, like many ugly things, it often goes wanting for attention. Merchants, by nature, want to sell things. They want to think of their customers in terms of how their needs can best be met, not how to stop the relatively few trying to take advantage. These two facts have combined in a way that has resulted in a difficult environment for fraud prevention professionals.

Though it is a constant companion (one that is growing, mutating and threatening all the time), merchants just don’t want to talk about fraud—especially externally. Many executives feel publicly acknowledging a fraud problem can run counter to effective public relations and brand strategies. As a result, many of those tasked with preventing fraud for online merchants are operating with an incomplete understanding of the industry beyond the offices and conference rooms of their own companies.

The wall of silence is beginning to show cracks. The proliferation of data breaches and the fact they are flooding the online underworld with the fuel to commit fraud are receiving more media attention. So too, is the effect of the U.S. migration to the EMV security standard for payment cards on fraud in card-not-present channels: massive annual increases. The wider world is beginning to grasp the scope of the problem.

But, while the “what” is becoming clearer, the “how” remains elusive. Because fraud professionals have very little visibility into how their peers conduct their fraud prevention operations, they have relatively little insight beyond their own instincts and results guiding their efforts. Industry-wide benchmarks are rare.

The CNP-RISK IDENT Fraud Operations Survey is an annual research effort endeavoring to provide that information. What do fraud teams measure and how do they define success? To whom do they report in the organizational structure? To whom and how do they assign manual reviews? What tools are most effective and how do they evaluate them?

These are just a few of the areas this year’s survey covered and will serve as the basis going forward to assess how fraud operations are evolving from year to year as e- and m-commerce continue change the way consumers — and fraudsters — interact with businesses.

Download the whole 2018 Fraud Operation Study published by Card Not Present

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