Up to 65% of retailers say they lack adequate fraud management tools to support effective anti-fraud strategies, according to a report from ACI Worldwide. More than half (54%) of retailers in the U.S. and Europe still need to consolidate their fraud management solutions across all channels.
For the report, titled: Managing Fraud In An Omni-Channel World, ACI Worldwide commissioned Forrester Consulting to conduct a research study that outlined current omnichannel fraud management capabilities. The study was designed to identify and evaluate current pain points for omnichannel fraud management in the retail industry, and highlight the tools and strategies required to retail fraud effectively.
The top three challenges retailers face as they implement fraud management include:
- Omnichannel data aggregation (76%);
- Customer demand for faster fulfillment (73%); and
- An increasing number of payment options (71%).
With consumers continuing to shop and spend through an expanding number of channels and touch points, businesses need to make firm plans to protect payment and customer data. As retailers plan to beef up payment security, 35% of respondents identify point-to-point encryption (P2PE) as critically important, while 31% believe EMV/chip and PIN acceptance at the point of sale is critical. Retailers also pointed to network segmentation, key exchange/management, estate management and tokenization, as critical.
At the conclusion of the report, Forrester Consulting offered the following recommendations:
- Eliminate line-of-business silos and establish a lead fraud management individual or department to ensure that data can be shared, and fraud can be tracked and prevented across all sales channels;
- Articulate the value of effective fraud prevention across the business to secure necessary funding and maintain effective protection as the business grows;
- Ensure tokenization and P2P encryption technologies are adopted to increase payment security and simplify compliance; and
- Leverage tools and services that enable data integration and real-time fraud screening.
Click here to access the complete report.