Boston-based independent research and advisory firm Aite Group released a report today that examines the online fraud mitigation environment for financial institutions in North America. The report, titled "Online Fraud Mitigation: Tools of the Trade" indicates that both banks and customers are concerned with the prevention of cyber fraud and the fraud-fighting strategies that banks have in place.
Based on recent Aite Group interviews with 32 fraud-management and business-line executives at financial institutions, the report identifies cybercrime and malware as the cause of the greatest amount of pain for North American financial institutions today. Most of the institutions interviewed feel that behavior analytics is an effective strategy for fighting online fraud, but the report suggests that balancing effective fraud protection with usability is key to combatting threats while maintaining a positive user experience.
The report also notes that customers are beginning to become more interested in a prospective bank's fraud-prevention strategies. "Financial institutions' fraud-prevention capabilities are increasingly becoming a competitive differentiator," said Julie Conroy McNelley, senior analyst with Aite Group and author of the report. "Prospective commercial customers have begun to ask financial institutions about their fraud-prevention capabilities, and customers who perceive the approach to be inadequate often take their business elsewhere."
"Online Fraud Mitigation: Tools of the Trade" is the second in a five-part series examining online fraud mitigation. Visit Aite Group's website to purchase the report or to get additional details.