Majority of businesses (59 percent) in the Asia Pacific (APAC) region expect fraud cases to increase in the next five years.
This is according to the report by Experian-a global information services company-titled "The Economics of Fraud: Mitigating Risk Amidst Fast Growth and Innovation."
The report revealed that 51 percent of businesses in this region are spending more time and investment on fraud prevention.
On a scale of one to five, with five as the most concerned, China (3.9) and Indonesia (4.6) are the most preoccupied with fraud as compared to more mature markets in APAC like Australia (3.0) and New Zealand (3.1).
Meanwhile, businesses in the telecommunication and financial services sector are the most concerned industries about fraud. According to firms from the financial services sector, fast-growth markets like Indonesia is at risk of fraud on credit application (86 percent), while China (70 percent) and Malaysia (65 percent) are at risk of fraud in online banking.
"Fortunately, many leading companies have fraud prevention measures in place, but these will need to be hyper-dynamic, constantly seeking to balance risk mitigation with minimising customer impact and intrusiveness. With the accelerating adoption of electronic and mobile commerce, fast-growth markets are now facing a greater number and greater variety of risks of attacks from fraudsters. The direct financial costs to companies across almost all industry segments are significant and the reputational exposure is even more immense," said Jeff Price, Managing Director of South East Asia (SEA) for Experian.
In SEA, businesses in Singapore are most likely to pass on fraud prevention costs to customers. Companies in Malaysia are least dependent on external fraud prevention suppliers, which is the likely cause of their increased internal costs in fraud prevention measures.
Against other SEA counterparts, Indonesian companies' fraud prevention measures have a slight advantage when it comes to the impact to a customer's on-boarding process.
"The good news is that customers are not as affected by firms' security measures. However, as fraudsters become more sophisticated, the onus is now on businesses to re-evaluate, reinvent and innovate their fraud prevention measures to stay ahead of fraud threats," explained Price.
"If achieved, the result would be the better capture of fraudulent activity whilst maintaining the level of trust between consumers and businesses," he added.
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