According to a recently released report from LexisNexis Risk Solutions, financial services companies are now incurring almost three dollars in costs for every dollar of fraud.
While online fraud challenges continue to pose a threat to mid to large banks, perhaps the most pressing of them comes in a threefold package; delay in confirmed transactions, customer identity verification, and email or mobile verification continue to plague banks across the country.
The report from LexisNexis, which surveyed 175 financial services executives throughout the United States, revealed that every dollar of fraud costs $2.92—a 9.3% jump from this time last year.
Additionally, the fast increase in fraud costs may not only affect banks, says W.B. King from the Credit Union Journal. King says with the rising costs, credit unions may not be able to keep up.
Halloween may have passed, but its fair to say this rising statistic is quite spooky—and maybe even scary.