About 62% of Indian financial services firms believe that many solutions to detect and prevent a fraud lack the flexibility to adjust in real time, the TransUnion Cibil Fraud trend 2018 report showed.
Finance and insurance companies in India are twice more likely than the finance companies in the US to detect a fraud. The major hurdle for decision makers in this industry is how to fight fraud while ensuring that their prospective customers have a good experience, according to the TransUnion Cibil Fraud trend 2018 report.
About 62% of Indian financial services firms believe that many solutions to detect and prevent a fraud lack the flexibility to adjust in real time, the PTI reported citing the survey. Indian companies also struggle with the end-user authentication process, which results in poor customer experience.
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According to the survey, nearly 75% of the Indian financial services companies look at the return on investment (ROI) of their fraud detection and ID verification solutions through improved customer experience. The online survey was conducted by Forrester on behalf of TransUnion Cibil in financial services and insurance firms in India, Canada and the US to evaluate the state of fraud detection and ID verification.
The survey showed that one of the major problems for the insurance companies was verification of identities as fraudsters are doing three main types of fraud – identity theft, soft fraud and hard fraud.
While hard fraud pertains to policyholders or applicants deliberately showing a loss for financial gain, soft fraud means providing wrong information to a lower premium or misrepresent the value of a claimed item. Identity theft is related to using the stolen identity to apply for insurance or file a claim.
“Customers are demanding exceptional experiences throughout the insurance process. This means that false alerts, detection, prevention procedures and the investigations that go with it can negatively impact their customer experience,” TransUnion Cibil’s managing director and CEO, Satish Pillai, said.