Scams Pose Growing Challenge in APAC with Only 6% Confident in Adaptability

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Updated: 7:13 AM, Wed November 15, 2023

Scams Pose Growing Challenge in APAC with Only 6% Confident in Adaptability

Financial institutions in the Asia-Pacific (APAC) region are facing an increasing challenge posed by scams, with only 6% of respondents feeling confident in their ability to adapt to the changing nature of fraud, according to a joint report by Feedzai and Chartis Research. The report, titled Scam Prevention in Asia-Pacific: A Survey of Banking and Payment Provider Professionals, surveyed professionals from 48 banks and 27 payment service providers (PSPs) in Australia, Malaysia, the Philippines, Thailand, and Singapore.

While advancements have been made in the approach to scams, with 97% of organizations surveyed having some form of awareness program in place, the report highlights that scams remain a concern as they become more sophisticated. Increased operational costs were cited as the most significant impact of fraud and scams, with 67% of Australian respondents and 38% of Singaporean respondents expressing this concern.

The use of technology, particularly artificial intelligence (AI), has helped improve fraud detection in the region. Over 80% of organizations now utilize AI in some form to detect fraud, employing machine learning (ML) algorithms to analyze historical fraud data and identify patterns and anomalies that may indicate fraudulent activity.

Despite these improvements, the report reveals that the majority of organizations do not feel prepared to adapt to changing scam typologies quickly enough. Only 46% of respondents believe they have comprehensive scam controls in place, and just 6% are fully confident in their ability to adapt. Payment service providers are more likely than banks to have comprehensive controls, with 60% of PSPs planning to enhance fraud detection controls compared to 39% of banks.

With nearly 90% of respondents anticipating the introduction of scam reimbursement regulations within the next 12 months, banks and PSPs must prepare for the potential financial implications. Scam reimbursement was identified as the largest impact by 30% of respondents. The report suggests that future regulation will likely increase the importance of proactive, real-time fraud mitigation.

Tom Clifford, Strategic Accounts Director at Feedzai, emphasized the need for continuous adaptation in the face of evolving fraud and scams. While advanced technologies like AI have enhanced fraud prevention, organizations should focus on leveraging enterprise data and improving their ability to adapt to the changing fraud landscape.

Nick Vitchev, Research Director at Chartis, highlighted the sizeable challenge of detecting and preventing scams in the APAC region. However, he also noted that there are already institutions and governments taking a leading role in the global fight against scams, providing valuable lessons for others to learn.

In conclusion, financial institutions in the APAC region are making progress in fraud prevention but face an ongoing challenge as scams become more sophisticated. The adoption of advanced technologies such as AI has bolstered fraud detection efforts, but organizations must improve their adaptability and leverage data effectively. With the expectation of scam reimbursement regulations, banks and PSPs need to be proactive in mitigating fraud in real-time.

Frequently Asked Questions (FAQs) Related to the Above News

When was the joint report on scam prevention in Asia-Pacific released?

The joint report on scam prevention in Asia-Pacific was released recently. The date of release is not specified in the news article.

How many respondents felt confident in their ability to adapt to the changing nature of scams?

Only 6% of respondents felt confident in their ability to adapt to the changing nature of scams, according to the report.

Which organizations were surveyed for the report?

The report surveyed professionals from 48 banks and 27 payment service providers in Australia, Malaysia, the Philippines, Thailand, and Singapore.

Did the report find advancements in combating scams?

Yes, the report found that advancements have been made in combating scams, with 97% of organizations surveyed having some form of awareness program in place.

What was considered the largest impact of fraud and scams?

Increased operational costs were considered the largest impact of fraud and scams, according to the report.

Are concerns about scam reimbursement regulations increasing?

Yes, concerns about scam reimbursement regulations are on the rise, with almost 90% of respondents believing that such regulations will be introduced in the next 12 months.

How has artificial intelligence (AI) contributed to fraud detection?

Artificial intelligence (AI) has played a role in improving fraud detection, with over 80% of organizations in the region now using AI in some form.

What are the significant concerns for banks and payment service providers?

More proactive real-time fraud mitigation and the ability to adapt to the changing fraud landscape remain significant concerns for banks and payment service providers, according to the report.

What is the report's suggestion for combating evolving scams?

The report suggests that there is a need for continuous adaptation in order to stay ahead of evolving scams.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Shreya Gupta
Shreya Gupta
Shreya Gupta is an insightful author at The Reportify who dives into the realm of business. With a keen understanding of industry trends, market developments, and entrepreneurship, Shreya brings you the latest news and analysis in the Business She can be reached at shreya@thereportify.com for any inquiries or further information.

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