COSTA MESA, Calif.—A new survey indicates that 60% of marketers are unsure of the cost of fraud to their organization.
The Experian survey also indicates that 40% of marketers say their organization has been targeted by hackers or cybercriminals. Experian, surveyed 250 marketers to understand the relationship between omnichannel retailing, fraud prevention and the holiday shopping season. The findings show that few marketers understand the full benefit of fraud-prevention systems on their activities, the company stated.
The study shows that 35% of businesses planned to increase their digital spend for the 2014 holiday season and are already running cross-channel marketing campaigns. “As marketers integrate more channels into their campaigns, new challenges emerge for fraud-risk managers who face continuous pressure to adopt new approaches,” the company stated, sharing three steps to help marketers and risk managers maintain a frictionless experience for customers:
• Marketers should communicate their plans early to the fraud-risk team, especially if they are planning to target a new or unexpected audience. Making this part of the process will reduce the chances that risk management will stop or inhibit customers.
• Ensure that marketers understand what the risk-management department is doing with respect to fraud detection.
• Marketers shouldn’t assume that fraud won’t affect their business and talk to their risk-management division to learn how much fraud truly costs their company. Then they can understand what they need to do to make sure that their marketing efforts are not thwarted.
“Marketers spend a great deal of time and money bringing in new customers and increasing sales, especially this time of year, and in too many cases, those efforts are negated in the name of fraud prevention,” said David Britton, vice president of industry solutions, 41st Parameter, a part of Experian. “Marketers can help an organization’s bottom line by working with their fraud-risk department to prevent bad transactions from occurring while maintaining a seamless customer experience. Reducing fraud is important and protecting the customer experience is a necessity.”