Deloitte: E-Commerce and Payments Fraud High on Priority Lists of Organizations, but Customer Solutions Lacking
56 percent of executives prioritize online and email fraud; mobile threats lag in significance
NEW YORK, Oct. 14, 2013 – E-commerce and payments fraud remains high on the agenda for consumer-facing organizations, according to a recent Deloitte online poll. Nearly half (47 percent) of executives and managers reported that fraud protection ranks as a “high priority” for their organization and a further eight percent cited this as their organization’s number one priority.
Despite fraud prevention ranking as a high priority, only nine percent of respondents stated that their organization currently provides customers with free fraud prevention solutions. Similarly, budget increases for fraud solutions have been minimal over the past twelve months, with only nine percent stating that their fraud protection and detection budget increased substantially. An additional 22 percent reported fraud budgets had increased marginally, while a similar number (21 percent) stated that budgets remained unchanged.
“Along with the positive impact of digital commerce comes the risk of fraud to businesses and customers,” explained David Williams, chief executive officer, Deloitte Financial Advisory Services LLP. “With monthly phishing attacks increasing 40 percent last year1, education and fraud solutions for the end-customer are often a powerful way for organizations to police and control fraud.”
Only nine percent of respondents cited mobile fraud as a top concern for their business, even with mobile e-commerce solutions on the rise. Thirty five percent of respondents identified online as the greatest area of fraud concern, followed by e-mail (21 percent) and non-digital fraud (13 percent).
“It’s surprising mobile isn’t more of a focus, given the rise of mobile banking and mobile apps introduced by retailers,” said Prakash Santhana, director, Deloitte Financial Advisory Services LLP. “Fraud risk and problems like malware will likely continue to rise as mobile commerce becomes more prevalent.”
More than 2,200 professionals from industries including financial services; consumer and industrial products; technology, media and telecommunications; life sciences and health care; and energy and resources responded to polling questions during an August 2013 webcast, titled “E-commerce and Payments Fraud on the Rise: Protection Techniques for Banks and Consumers.” Click here to listen to the webcast.
1Source: McAfee Threats Reports: Third Quarter 2012
As used in this document, “Deloitte” means Deloitte Financial Advisory Services LLP, a subsidiary of Deloitte LLP. Please see http://www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.