Study: Retailers lack tools to fight omnichannel fraud

Naples, Fla. – Retailers often may not have the tools they need to effectively fight omnichannel fraud. More than half (54%) of retailers in the U.S. and Europe still have to consolidate their fraud management solutions across all channels, according to new research conducted by Forrester Consulting for ACI Worldwide.



The survey shows that 60% of retailers believe they know what they need to do to combat fraudulent activity, but far fewer believe they have the tools to enable them to do this successfully. There is also a mismatch between fraud trends and retailers’ ability to tackle new forms of fraud.



For example, Card Not Present (CNP) transactions worldwide are growing at an annual rate of 15%, and will reach more than 27 billion transactions by 2018. By comparison, card-present (CP) transactions are expected to 4% during the same time period. However, less than half of retailers surveyed say they use real-time rules and neural models for the protection of their CNP channels, while almost two-thirds say they use such tools for their CP channels.



Apart from sophisticated tools and the shortage of adequately skilled staff, respondents also believe that lack of funding (60%) and executive sponsorship (63%) limit their ability to perform effective omnichannel fraud management.