More than 50% of retailers in the US and Europe still have to consolidate their fraud management solutions across all channels. Omni-channel retail sales are predicted to reach $1.8 trillion (£1.1 trillion) in the US by 2017, with sales in Europe predicted to hit €920 billion (£660 billion), or 44%of total European sales, by 2018.
According to new commissioned research conducted by Forrester Consulting for ACI Worldwide and published in a report titled, Managing Fraud in an Omni-Channel World, omni-channel data aggregation, the increasing number of payment options, the demand for faster fulfillment and the rapidly changing nature of fraud all present significant challenges to retailers’ fraud management programs.
The study also shows 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 percent, and will reach more than 27 billion (transactions) by 2018. By comparison, card-present (CP) transactions are expected to grow less than 5 percent (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 omni-channel fraud management.
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