The so-called "fourth industrial revolution" in computing and artificial intelligence (Al) isn'tjust helping legitimate firms. As fraudsters professionalize, banks and fintechs need to fight back - and a "one size fits all" approach focused on Al alone won't work. Nexi Group explain how to counter recent massive rises in fraud.
Two major trends characterize the modern European economy: the shift from physical to digital commerce, and a rising tide of fraud in these new digital channels.
To give some idea of how rapidly Europe's economies are going digital, current e-commerce penetration in Europe stands at around 65% of all consumers - but much more in leading markets such as the Netherlands, Sweden and Norway, where up to 95% of consumers shop online.
This year, spending in digital channels including mobile is growing at twice the rate of physical sales, and is projected to exceed four trillion dollars by 2027, just under half of all online sales worldwide.
Amid such rapid growth, fraud defenses are being increasingly tested by new fraud types tailored to the digital era. The blanket term, "Card Not Present" (CNP) fraud covers not just standard fraud using fake or stolen cards online, but also new and more challenging types such as Account Takeover (ATO), synthetic ID fraud and Authorized Push Payment (APP) fraud, which is becoming a significant problem in the US, India and other markets as instant payments linked to Open Banking proliferate ...
Discover more on our Whitepaper.
