Nearly one in every five Australian businesses are targeted by online fraudsters each day and large businesses are now taking prevention methods more seriously than just 12 months ago, according to new research.
Jeff Price, Managing Director of Experian Decision Analytics APAC, says the unprecedented levels of fraud attacks on Australian businesses is only set to increase.
“Fraud is a serious and growing issue for corporate Australia. Similar to other markets around the world, we can expect to see a rise in the level of fraud attacks and an expansion in the types of fraud perpetrated on Australian businesses and their customers in the coming year,” he says.
“For example, in global markets, we are seeing the growth of emerging trends like corporate account takeover fraud, which is when an organisation’s business bank accounts are exposed to a fraudster and can lead to massive losses.
“This is an issue we expect to see emerge in Australia in the near future and businesses need to be prepared to withstand these emerging and persistent threats.”
Brand reputation and revenue of businesses are also taking a hit from fraud attacks due to transactions becoming blocked due to additional confirmations for legitimate online transactions, which can result in consumers becoming frustrated and damaging customer loyalty.
“It’s critical for organisations to have the right systems and technology in place to withstand the increasing frequency and type of attacks, yet doing so can’t limit their ability to accept legitimate transactions,” Price says.
“We know that Australian businesses looking to expand into new markets can be challenged by verifying the identity and legitimacy of offshore customers and this can place pressure on their growth.”