User authentication is foundational to fraud prevention

Fraud is costing businesses up to 4.6 times the actual value lost to fraud

Who is responsible for preventing fraud? The answer is less straightforward than you may think. With fraud occurring at various touchpoints in the customer journey, tackling it has become an increasingly complex exercise in collaboration, coordination, and continuous monitoring among businesses, technology providers, and customers themselves.

In the Asia Pacific region, 52% of organisations reported a rise in fraud in 2023, with digital channels accounting for 51% of overall fraud losses. The top 5 industries with the highest instances of identity fraud are online media, professional services (including banking and finance), healthcare, transportation, and video gaming.

Communication-driven security for user authentication

Among the most significant types of fraud is synthetic identity theft—where falsified identities are used to access services and perform fraudulent activities. As fraudsters become increasingly sophisticated in their attacks, one of the major challenges in fraud prevention is determining how to distinguish between legitimate human transactions and those of malicious bots.

Here’s where communication plays a crucial role in user authentication. By using channels such as SMS, voice, and messaging apps, businesses can implement security measures to verify identities and secure interactions at multiple stages of the user journey—allowing for fraud incidents to be detected as early as possible.