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Fraud costs HK firms $3.64 per dollar lost

Financial institutions face a higher cost of $4.31.

The financial impact of fraud extends beyond direct losses, with organisations incurring a cost of $3.64 for every Hong Kong dollar lost.

Retailers incur a lower cost of $2.70, while financial institutions face a higher cost of $4.31.

The costs companies incur include internal labour expenses, external costs, legal and recovery fees, and the expense of replacing and redistributing lost or stolen merchandise.

In Hong Kong, 58% of companies reported an increase in fraud.

LexisNexis also reported that the rapid adoption of digital payments exposes systems and channels to advanced fraud attacks using emerging technologies such as AI.

Such enables scammers to leverage the anonymity of digital and cross-border transactions for fast and untraceable fraud, targeting both consumers and businesses.

Additionally, 79% in Hong Kong believe that fraud affects customer satisfaction (APAC, 75%) and influences customer conversion (APAC, 75%).

To combat rising fraud risks, organisations should enhance their fraud management and authentication solutions using AI, machine learning, and biometric and behaviour-based authentication methods.

In Hong Kong, 86% of organisations invest in fraud solutions spanning six to nine types to cover different customer journey stages.

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