1 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

5 important reasons to protect your organization from fraudsters

2 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

Are you protecting your organization from fraudsters?

Institutions are struggling to strike a balance between compliance requirements,

aggressive origination targets, dynamic and intelligently deployed fraud threats, and

delivering great customer service.

Finding the right strategy to address all of these concerns can be daunting, but not

nearly as concerning as failing to protect your customers and your institution.

Here are five important reasons why you need to protect your organization from

fraudsters now.

3 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

#5: Brand reputation

While the monetary cost of fraud losses can be

high, the impact of a loss or breach can have on

customer relationships and brand integrity can

be even higher.

A single incident can destroy the credibility built

over the years. Don’t let these fraudsters hurt

your customers, your brand and, in turn, hurt

your bottom line.

Did you know…

U.S. false declines are estimated

to reach $331 billion in 2018 – up

$96 billion from 2015.*

*Source: Aite Group

4 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

There are many fraud compliance requirements changing

the way organizations do business, including:

• Red Flags Rule requirements.

• USA PATRIOT Act checks, like AML or KYC/CIP.

• CFPB mandates.

• NIST levels of assurance in authentication.

• The myriad of other guidelines and rules.

With the right solution and approach to compliance, your

business can meet regulatory requirements, and leverage

your compliance efforts as a competitive advantage in the

marketplace.

#4: Compliance

Did you know…

Noncompliance costs 2.65X more

than investing in a technology-

based compliance solution.

5 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

Intrusiveness. Friction. Unnecessary login challenges.

False declines. Fraud mitigation is important, but so is

customer experience.

It is not uncommon for consumers to abandon a

transaction if the process is too cumbersome or leave

an institution completely when falsely declined.

The recipe for an effective fraud-authentication

strategy is striking the perfect yet dynamic balance—

between accurately identifying and segmenting likely

fraudulent customers and activities—and seamlessly

enabling the vast majority of legitimate customer

transactions.

#3: Customer experience

Source: Experian, 41st Parameter study

Did you know…

83% of consumers reported

feeling frustrated, upset or

even betrayed when declined.*

6 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

From financial performance and operations to the

lost revenue of good customers and the total cost

of acquisition — protecting your customers and your

institution is tied to the bottom line.

Fraud is not going away. Managing and mitigating

fraud risk and continuously monitoring performance to

adjust your strategies will enable you to be profitable

while ensuring everyone is protected.

#2: Profitability

Source: The Nilsen Report

Did you know…

Direct fraud losses totaled

$16.3 billion globally last year,

or nearly 5.7 cents for every

$100 in transaction.*

7 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

#1: Increased fraud and credit charge-offs

The fraud landscape is constantly evolving, with

schemes continuing to rise in sophistication. This

trend will continue, as personally identifiable

information continues to be readily accessible for

organized crime as well as willing participants in

first-party fraud schemes.

Your organization must evolve as well. That

evolution can be made possible through a

flexible, scalable and adaptable solution.

Source: Aite Group

grow to

Credit card

application

fraud losses*

$2.1B(2020)

grow to

$1.2B(2016)

U.S. DDA

application

fraud losses*

$694M(2020)

grow to

$466M(2016)

8 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

Protect the customer.Protect their experience.Protect your institution.

Customer experience Fraud prevention

9 © Experian [Public] 8/1/17 5 important reasons to protect your organization from fraudsters

We can help you safeguard your business from fraud.

Let’s get started.

Call 888-727-8330

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