Nearly one in every five Australian businesses are targeted by online fraudsters each day and large businesses are now taking prevention methods more seriously than just 12 months ago, according to new research.
Jeff Price, Managing Director of Experian Decision Analytics APAC, says the unprecedented levels of fraud attacks on Australian businesses is only set to increase.
“Fraud is a serious and growing issue for Australian business. Similar to other markets around the world, we can expect to see a rise in the level of fraud attacks and an expansion in the types of fraud perpetrated on Australian businesses and their customers in the coming year,” he says.
“For example, in global markets, we are seeing the growth of emerging trends like corporate account takeover fraud, which is when an organisation’s business bank accounts are exposed to a fraudster and can lead to massive losses.
“This is an issue we expect to see emerge in Australia in the near future and businesses need to be prepared to withstand these emerging and persistent threats.”
Brand reputation and revenue of businesses are also taking a hit from fraud attacks due to transactions becoming blocked due to additional confirmations for legitimate online transactions, which can result in consumers becoming frustrated and damaging customer loyalty.
“It’s critical for organisations to have the right systems and technology in place to withstand the increasing frequency and type of attacks, yet doing so can’t limit their ability to accept legitimate transactions,” Price says.
“We know that Australian businesses looking to expand into new markets can be challenged by verifying the identity and legitimacy of offshore customers and this can place pressure on their growth.”
We specialise in Cyber Liability insurance. We have access to a suite of specialist insurance policies to cover you and your business against cyber crime and the new data privacy legislation.
Through our underwriting partners, we have arranged specialist insurance policies designed to address the exposures you face from relying on the internet, email, websites, or computer programs, data and from storing private information about your clients. Contact us for more information.
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.