Combating cyberfraud is a “balancing act,” says Sift Science, a fraud detection software company. And the number of things corporations have to juggle to safeguard their data — from the numerous types of fraud to the copious technologies that combat it all — mean cybersecurity is no easy task.
Sift Science has just released its latest research on how businesses combat security threats, and its report, published last week, offers insight into how the issue of cybersecurity takes many shapes within the enterprise.
For instance, while credit card fraud may be top-of-mind for many businesses, Sift Science found that 62 percent of businesses say they are facing payments fraud related to digital goods in particular. Nearly half (46 percent) cited fake accounts as a threat to their company.
With several types of fraud threatening the business today, spending on cybersecurity measures is spiking — big time. According to the report, 86 percent of companies expect at least the same level of fraud in 2017, and 91 percent of firms say they plan to spend at least the same amount of money on anti-fraud measures as they have in the past.
The financial consequence of fraud comes out on top when businesses consider impacts of cybercrime; losing money to fraud is the most common concern of businesses, researchers found, with more than three-quarters citing the problem as one that keeps them up at night. But cybersecurity threats can negatively impact a company in a multitude of ways, from threatening a firm’s expansion into new markets, to hampering product launches, to being able to mitigate fraud risk without having to turn away customers.
Despite plans to boost money on the enterprise security front, Sift Science’s research found that businesses today are expected to do more with less when it comes to cybersecurity. Only 9 percent said their budgets will increase their anti-fraud budgets, yet 70 percent said they are looking for a more efficient cybersecurity process. The same percentage said they are looking to automate their anti-fraud efforts. More than a fifth, meanwhile, said they are looking to increase cybersecurity staff to combat fraud issues.
Beyond Fraud
As outlined in another report released recently, payments fraud isn’t the only issue troubling businesses today. Other analysis conducted by encryption solution provider Echoworx also identified email security as a top priority for companies looking to safeguard data.
More companies today consider email and message encryption as a crucial part of their security efforts than they did in 2015, the report found. And in 2016, 75 percent of companies surveyed by Echoworx said they are developing an encryption strategy — compared with only 51 percent that said the same in 2015. More than three-quarters of companies said they are planning to use encryption solutions in conjunction with data protection technology in the near future.
Wishful Thinking
As companies explore exactly how they plan to tackle the problem of fraud, Sift Science asked survey respondents to identify what they’re looking for in the technologies they can access to safeguard their businesses.
One respondent identified biometric authentication tools — specifically, a retina-scanning solution — that integrates into a credit card solution. Other respondents identified artificial intelligence, in conjunction with biometric authentication measures, like facial and voice recognition, as ideal to their anti-fraud efforts.
Others want solutions that collaborate with law enforcement agencies and banks to be able to identify and mitigate fraudulent activity, while some respondents are looking for a “punishing” measure — one even described their ideal anti-fraud solution as a “digital German shepherd with gigantic teeth.”
This is wishful thinking, certainly, especially considering the sophistication of modern-day cyberattackers. And while employees may be a first line of defense in identifying and mitigating a potential threat — from implementing email encryption technologies to being educated on the signs of a potential breach or fraud event — recent reports have found that employees can be the actual cause of some of these cybercrimes. Considering all of the types of fraud and cybercrime a business must handle, including internal and external threats, it is clear from the research that companies have a lot on their plate when it comes to enterprise security.