Singapore – With the increasing cases of digital fraud, a recent study by global digital identity and fraud solutions firm GBG found that 81% of businesses in Asia Pacific consider the importance of combating fraudulent criminal activity through cross-sector collaboration and intelligence sharing.
In the research, about 80% of the respondents were involved in an identity intelligence consortium, which facilitates the sharing of transaction data and international consumer intelligence among businesses across various sectors and national borders. On the other hand, 91% of those who have not joined the consortia believe they should join.
Interestingly, approximately 83% noted that the drive to maintain a competitive advantage prevents organisations from participating in collaborative efforts to combat fraud. Another 79% also think that global governments are not doing enough to support cross-sector collaboration. This sentiment is reflected in the difficulty faced by 76% of APAC businesses in identifying fraudsters during the onboarding process.
In Australia, for instance, the report revealed that a significant 69% acknowledged experiencing known or suspected fraud in the past year, and 71% of them reported an increase in fraud attempts as compared to the previous year.
Additionally, around 78% noted a significant rise in the sophistication of such fraud attempts. A significant 69%, on the other hand, believe that opportunistic and convenient fraud presents a greater threat to their businesses than sophisticated fraud, which concerns 31%.
Carol Chris, general manager for APAC at GBG, said, “Sharing consumer intelligence to combat fraud does not mean a business will lose its competitive advantage. This is a myth that needs to be busted fast. Businesses do not share raw data within consortia but anonymised patterns and insights on confirmed or suspicious fraud. This has a huge benefit for all businesses, regardless of sector. After all, criminals don’t limit fraud attacks to one business, industry or stop at national boundaries either.”
Carol further continued, “Shared consumer intelligence is a powerful trust-building tool that creates a safer environment and online experiences for both businesses and consumers. It is heartening to see businesses are embracing this as it keeps them and their users protected from fraud and financial loss.”
“It would also help the high numbers of industry professionals reporting burnout as a result of high levels of fraud. Those businesses who are not collaborating now should do so swiftly or risk losing out,” she concluded.
