North American Financial Executives More Concerned About Fraud, Yet Actual
Fraud Higher Overseas
New ACI Worldwide survey highlights differences in North America and global
sentiment when addressing commercial online, ACH and wire fraud
*40 percent of North American financial executives experienced attempted
ACH and wire fraud versus 54 percent in rest of the world
*14 percent of North American financial executives experienced actual ACH
and wire fraud versus 43 percent in rest of world
NAPLES, Fla. -- December 16, 2013
When it comes to wire and automated clearinghouse (ACH) fraud, global
financial executives agree that the biggest negative impact is reputational
damage. Regionally, North American financial executives are experiencing less
fraud than their global counterparts, according to a recent survey from
electronic payment and banking systems leader ACI Worldwide (NASDAQ: ACIW),
which examines global fraud trends in wholesale/commercial banking.
North American financial executives also perceive an increase in the rate of
online account takeover attacks (63%) compared to their global counterparts
(50%) in the last 12 months. Yet in the same period, attempted and actual wire
and ACH fraud related to account takeover is lower in North America than at
the global institutions, based on survey responses.
Fraud Protection Focus
It’s no surprise that financial executives surveyed across all geographies are
focused on fraud protection. Because of a heightened concern and bleaker view
of online account takeover fraud, both North American and global respondents
are fighting hard to protect their wire and ACH accounts—with varying focuses.
North American financial executives are placing more emphasis on utilizing
tools that address device protection, while their global counterparts are more
focused on payment-specific transaction monitoring and online session anomaly
*84 percent of North American banks are utilizing device protection tools
(such as device ID, secure browsing and malware protection)
*89 percent of rest of world banks are utilizing payment-specific
Although fraud protection is top-of-mind, when it comes to compliance with
regulations around the security of commercial accounts, surprisingly 18
percent of all respondents admit to being only mostly or partially compliant
with current security regulations. FFIEC (Federal Financial Institutions
Examination Council) guidelines in the US have brought a spotlight to
monitoring online banking activity and are a likely driver as to why most
organizations must continue to shore up their defenses.
Confidence in Fraud Management Tools
All respondents report confidence in fraud-fighting tools, although they
differ in terms of which tools they believe are most effective. In an
effectiveness scale from 1-5 (with 5 being most effective):
*North American respondents rank layered security protocols highest (4.06
ranking), followed by payment transaction monitoring and device protection
*Rest of world, payment-specific transaction monitoring slightly edges
device protection as the most effective approach (4.0 ranking)
Real-time settlement in global financial markets has impacted the focus and
need for fraud prevention tools. All respondents agree that cross-channel
fraud monitoring and online session anomaly detection have the most room for
“As electronic payment transaction volumes increase, so too do fraud attacks
on those transactions. Financial institutions are faced with not only
increasing scrutiny and regulatory pressures, but also the risk of
reputational damage and loss of customers, which is why they’re working
tirelessly on preventative measures,” said Mike Braatz, Senior Vice President,
Payments Risk Management Solutions, ACI Worldwide. “The real-time nature of
payments has a direct impact on fraud prevention tactics. Longer ACH
settlement times likely contributed to the lower fraud rates in the US
compared to their global counterparts. For example, Faster Payments in the UK
has put increased pressure on banks to stop attempted fraud in real time.”
To download a copy of the survey results and view the accompanying
infographic, please visit aciworldwide.com/wholesalefraudsurvey.
About the Survey
The survey, titled Strategies to Prevent Attacks on Commercial Accounts, was
conducted by Gatepoint Research on behalf of ACI Worldwide. Respondents were
comprised of 100 senior finance, fraud and operations decision makers from
financial institutions across the globe (76% director-level or above, 50% vice
president-level, 3% CxO-level).
About ACI Worldwide
ACI Worldwide powers electronic payments and banking for more than 5,000
financial institutions, retailers, billers and processors around the world.
ACI software enables $13 trillion in payments each day, processing
transactions for more than 250 of the leading global retailers, and 21 of the
world’s 25 largest banks. Through our comprehensive suite of software products
and hosted services, we deliver a broad range of solutions for payments
processing; card and merchant management; online banking; mobile, branch and
voice banking; fraud detection; trade finance; and electronic bill presentment
and payment. To learn more about ACI, please visit www.aciworldwide.com. You
can also find us on Twitter @ACI_Worldwide.
© Copyright ACI Worldwide, Inc. 2013.
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