Companies are most concerned about account takeover, phishing, new account fraud and fake users, according to study sponsored by Telesign

For the vast majority of organizations (92%), fraud management is either extremely important or somewhat important to their overall business strategy, according to a new study conducted by Gatepoint Research and sponsored by leading digital identity firm Telesign.

The report, which explores the fraud management strategies of business executives and decision makers across corporate America, also found that a majority of respondents (53%) admit their organization has gaps in their ability to mitigate fraud, rating themselves as somewhat to very ineffective.

“Fraud management is vitally important because it increases confidence in your organization,” said Joe Burton, CEO of Telesign. “With so much of our daily lives conducted online, fraud prevention is now a critical component for business success. People trust the platforms they use to be safe, and they blame the brand if that trust is violated.”

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Fraud continues to plague organizations

When asked what fraud schemes or tactics were of top concern to their business this year, 50% of respondents cited account takeover, followed by phishing at 45%, new account fraud at 38%, and fake users at 21%.

The report also found that the battle against fraud is unrelenting. Nearly two-thirds of respondents (65%) revealed that the number of fraud attempts at their organizations either stayed the same or increased by 25% or more over the last year.

Surprisingly, even in the face of security gaps and rising fraud attempts, a high number of those surveyed (43%) have not added to their fraud prevention budget, while just 29% of respondents increased their fraud prevention budget this year.

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Challenges remain when fighting fraud

Fraud is now costing businesses and individuals across the world more than $5 trillion annually. Bad actors are getting more and more sophisticated, so putting in measures to stop fraudsters and mitigate attacks is crucial.

When it comes to fighting fraud and fraud prevention, multi-factor authentication has had the most significant impact by far, with 73% of respondents citing it as their top preventive technology. Also effective, say 52%, are AI and machine learning technologies, followed by digital identity verification at 40%.

Organizations feel as though they are fighting an uphill battle when minimizing fraud. Over 60% of the respondents cited lack of customer awareness as their biggest challenge against fraud. This was followed by quickly evolving fraud tactics at 56% and the fact that fraudsters have greater access to customer information on the internet, cited by 40% of respondents.