- Scams: While credit card fraud is the most costly fraud, scams are a close second, cited by 15% of respondents.
- False Positives: 56% of fintech report that 10-50% of their fraud alerts are nothing more than false alarms.
- Operational Efficiency: 35% that are dependent on engineering to write and deploy rules wait over a month for rule deployments
- Real-Time Monitoring: 96% who have implemented Real-Time Monitoring over a year ago testify to improvements in fraud detection
- AML Burden: 48% report an increase in SAR filings YoY with 13% experiencing a significant increase
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REASERCH REPORT
4 Trends for Fintech to Combat Fraud
These are the findings from the 3rd annual State of Fraud & AML report, in which we surveyed 350+ fraud and AML practitioners. This research report dives specifically into the findings from 215 fintechs across the US.
A preview into key findings
About this report
Fraud continues to plague the financial services industry, and fintechs are no exception. Payments are moving faster than ever, and fraudsters constantly evolve their tactics. Fintechs are seeing a surge in scam activity and are facing constraints due to the burden of AML. Many are seeing large false positive rates and bottlenecks when deploying new rules. Some use Real-Time Monitoring (RTM) to combat operational inefficiency and catch fraud, while others combine fraud and AML teams to help.
Despite all this, Fintech is still seeing large fraud losses, with more than a quarter of respondents stating losses above $1 million.
In this report, we examine survey results from 215 fintechs and uncover what is holding them back. We also discuss how agility and speed must play a critical role in combating fraud in the years to come.
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