Application Fraud: Fighting an Uphill Battle

New Aite Group research projects that by 2020, spending by U.S. FIs to combat credit card application fraud will reach US$781 million.  

Boston, December 11, 2018 — Application fraud continues to be a significant problem for financial institutions across the U.S. As identity crimes continue to grow, it is increasingly difficult for FIs to determine who they are dealing with in all delivery channels. These identity crimes are influencing a number of strategies and resulting in FIs planning to make new technology investments to meet both compliance (Know Your Customer) and fraud challenges. Aite Group’s latest report, Application Fraud: Fighting an Uphill Battle, examines the impact of application fraud on FIs.

“Three-quarters of FIs surveyed indicate that one of their top three pain points leading to application fraud is first-party fraud, followed by 56% indicating data breaches and 52% indicating social engineering in contact centers as top three pain points,” explains Shirley Inscoe, senior analyst at Aite Group. 

This new Aite Group Impact Report delves into how FIs are combating application fraud and how that will evolve. Aite Group conducted research using an online survey of executives from 30 U.S. FIs from March 2018 to June 2018 to better understand application fraud for both demand deposit accounts and credit cards. 

To request a press copy of this report or to speak with Shirley Inscoe about this topic, please contact us at [email protected].

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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