Risk Ident Online Fraud Forum 2015

Risk Ident Online Fraud Forum 2015

Risk Ident recently welcomed over 100 attendees from 40 different companies to our first Online Fraud Forum at the Empire Riverside Hotel in Hamburg. Attendees ranged from current customers, to those keen to learn about different anti-fraud solutions, to people from criminal backgrounds, as well as representatives from Europol. Each had a strong interest in fraud prevention and were enthusiastic to unite and share their experiences of dealing with it.

BlogOFF-01One thing that was immediately clear from the forum was that fraud is not a static issue; it is constantly developing. Encouragingly, the majority of attendees were aware of how crucial it is to keep up-to-date in order to react quickly and stay one step ahead of fraudsters. Instrumental in achieving this is greater transparency and in safe environment, so it was great to see fraud managers keen to learn best practice from their peers, as well as advice from fraud prevention experts.

Europol’s attendance offered another completely different viewpoint for our enraptured guests, helping showcase the problems it sees on a European level, along with advice and insight that was new to many of those in Hamburg. We’d like to thank Europol for adding great extended value to the day as it showed that initiatives exist that are both free and advantageous to businesses.

Throughout the event, presentations gave theoretical initiatives and showed projects that illustrated how different patterns of fraud and prevention. A series of educational roundtables provided an engaging learning opportunity on daily fraud issues, finding a real mixed-bag of problems being faced. It is clear that levels of experience differ greatly within the online industry and it became very apparent that there is not simply one single issue facing all companies.

We surveyed fraud management representatives from a wide range of industries attending the forum, including: fashion, financial services, banking, travel, digital goods, telecommunications, dating, gaming and sport, all of whom face heightening fraud risks online.

Businesses with less than €50million sales turnover, right through to those selling over €1billion per year are all affected by fraud, with smaller businesses often seen as an easier target for fraudsters, while larger businesses are financially attractive. The potentially catastrophic effect of fraud on revenue remains the same.

Attendees revealed that credit card payments are by far the most common payment method used for sales (87%), with debit card payments not far behind (70%). Companies reported that alternative, online payment options are also popular, with PayPal being commonly used (75%). Other payments channels were reported including cash in advance (50%), bills (55%), bank transfers (50%), cash on delivery (39%), financial instalments (35%) and Amazon Payments (8%).

It is important that companies are able to accept a range of payment methods to make it easier for their customers. However, they need to be aware that in doing so, they also open themselves up to more avenues for fraudsters to exploit and become more vulnerable to the risks associated with fraud.

In our next blog, we will discuss the most common types of fraud that attending companies revealed they are currently experiencing, as well as how much money they are setting aside for fraud management and whether this is enough to combat increasing sophisticated fraudsters.