Financial Firms in Asia Pacific Boost Fraud Prevention Efforts with AI and Anticipate Reimbursement Regulations
Financial institutions in the Asia Pacific region are taking proactive measures to combat fraud and ramping up their fraud prevention efforts, according to a joint report by Feedzai, a leading financial fraud detection software provider, and Chartis Research. The report revealed that 97% of organizations surveyed in Australia, Malaysia, the Philippines, Thailand, and Singapore have implemented some form of awareness program to tackle fraud.
One of the key findings of the report is that financial firms in the region have enhanced their internal touchpoints for scams and are increasingly utilizing technology to detect fraudulent activities. More than 80% of the organizations surveyed are now leveraging artificial intelligence (AI) in various forms as part of their fraud detection measures.
However, the report also highlighted that scams are becoming more sophisticated, presenting an evolving challenge for financial firms across the region. Increased operational costs were identified as the biggest impact of fraud and scams, with respondents from Australia being most likely to cite this as their primary concern (67%). In contrast, those from Singapore were the least likely to identify operational costs as the main impact (38%).
Despite efforts to combat fraud, the majority of organizations feel that their ability to adapt to changing scam typologies is lacking. Only 6% of respondents expressed full confidence in their firm’s ability to adapt. Payment service providers (PSPs) demonstrated a higher level of comprehensive scam controls compared to banks, with 60% of PSPs planning to further improve their fraud detection controls, compared to 39% of banks.
The report also revealed that almost 90% of respondents believe that scam reimbursement regulations will be introduced within the next 12 months. This anticipation reflects the need for continuous innovation in fraud prevention strategies to align with evolving regulatory landscapes.
Speaking on these findings, Tom Clifford, Strategic Accounts Director at Feedzai, emphasized the need for organizations to leverage enterprise data and stay adaptable in combating fraud. He highlighted the imminent introduction of potential scam reimbursement regulations, stating that banks and payment service providers must become more proactive in real-time fraud mitigation.
Nick Vitchev, Research Director at Chartis, echoed Clifford’s sentiments and emphasized the importance of staying ahead of the ever-changing fraud landscape through ongoing proactive measures.
As financial firms in the Asia Pacific region step up their fraud prevention efforts and embrace technologies like AI, their focus on combatting scams and adapting to new typologies remains critical. With the potential introduction of scam reimbursement regulations on the horizon, it is imperative for organizations to prioritize real-time fraud mitigation strategies to protect themselves and their customers.
