New Forbes Insight Report Reveals Almost 70% of Banking and Finance Leaders Believe AI-Powered Fraud Will Threaten the Security of User Transactions in 2024
27 Mars 2024 - 1:30PM
CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards,
security, and authentication solutions, today announced its
participation with Forbes Insights on a new report, Security Should
Be Simple: Your Road Map for Preventing Fraud & Building Trust.
The Forbes Insights report highlights growing pressures and
expectations for fraud prevention and user authentication based on
survey results from 200 business leaders in banking and financial
services. Key findings include a majority of respondents (68%)
expect to increase spending on fraud detection, nearly half (46%)
advocate for updates to security protocols for competitiveness, and
over half (51%) identify the challenge of balancing security with
user convenience. This is the latest original research from Forbes
Insights, which provides actionable intelligence for C-Suite
executives and other industry participants.
“Banks and financial institutions are grappling with the dual
challenge of enhancing protection while ensuring a seamless user
experience,” said Adam Lowe, Chief Product and Innovation Officer
at CompoSecure. “You often see this dichotomy that either it’s
secure or it’s hard, and anything that’s hard is something users
won’t do. The technology is now available to make the user
experience truly seamless and address password problems that only
create security holes and increase customer frustration.
Key insights from the report include:
- Customer Experience
– Improving customer experience is a main driver in implementing
new security techniques. The Forbes Insights research shows that
companies want to prioritize the customer experience with eight of
10 respondents agreeing that creating a better experience for
customer transactions is a key competitive advantage in the
industry, and 79% agreed that customer experience is top of mind as
they design new security protocols.
- AI-Powered Fraud – Proactive
measures are crucial to combat emerging threats like AI-powered
fraud and social engineering, highlighting the need for continuous
innovation in security strategies. Currently, 54% of survey
respondents are contending with AI-powered fraud, 50% with phishing
attacks and 38% with social engineering, while projections for one
year from now indicate a substantial rise to 69%, 44% and 45%
respectively.
- Multi-Factor Authentication –
Despite widespread adoption, multifactor authentication (MFA) faces
challenges from sophisticated scammers, necessitating innovative
solutions such as FIDO authentication and hardware keys. In fact,
62% of business leaders have future plans for enhancing
cybersecurity via hardware authentication (e.g., key card, fob ,
USB drive).
- Budgets – Most
(65%) survey respondents stated their annual budget for call center
resources dealing with password resets or identity verification
will grow over the next year, and the same proportion said that the
budget dedicated to password protection will also grow
year-over-year. Additionally, more than a third plan to increase
spending on FIDO, nearly half plan to increase spending on
passwordless authentication and 65% plan to increase spending on
multifactor authentication.
As business leaders face increasing threats, innovative
solutions like hardware keys are gaining traction. Advancements in
authentication technology, particularly through solutions like
Arculus Authenticate™, a custom digital security platform by
CompoSecure, offer a promising avenue for simplifying secure
transactions without compromising convenience. With a simple tap of
the card to a mobile phone, customers can authenticate themselves,
approve high-dollar transactions, and reduce fraud with Arculus
Authenticate™. Arculus by CompoSecure is FIDO2 certified and an
approved Microsoft vendor, offering users a reliable and
user-friendly secure passwordless authentication solution.
Financial institutions can enhance customer trust and differentiate
themselves in a competitive market by embracing frictionless
authentication methods such as FIDO2, ultimately improving the
overall customer experience while safeguarding sensitive data.
Methodology
Forbes Insights surveyed 200 U.S.-based business leaders: 23% of
respondents came from banking companies, 23% from brokerage
companies, 20% from credit card companies, 20% from fintech
companies and 15% from neobanks. Respondents’ titles included COO
(13%), CISO (13%), CIO (13%), CTO (13%), as well as directors/heads
(25%) and SVPs/VPs (25%) in operations, fraud, fraud prevention,
risk management, customer experience, technology, cybersecurity,
information security, vulnerability and penetration testing and
system architecture. All respondents came from organizations with
at least $250 million in annual revenue and 35% of respondents work
for organizations with annual revenue of over $1 billion.
About
CompoSecureFounded in 2000, CompoSecure (Nasdaq:
CMPO) is a technology partner to market leaders, fintechs and
consumers enabling trust for millions of people around the globe.
The company combines elegance, simplicity and security to deliver
exceptional experiences and peace of mind in the physical and
digital world. CompoSecure’s innovative payment card technology and
metal cards with Arculus security and authentication capabilities
deliver unique, premium branded experiences, enable people to
access and use their financial and digital assets, and ensure trust
at the point of a transaction. For more information, please visit
www.CompoSecure.com and www.GetArculus.com.
Media Inquiries: Wes Robinson
wrobinson@olmsteadwilliams.com310-824-9000
CompoSecure (NASDAQ:CMPO)
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