110 views
Photo by Guerillabuzz from Unsplash

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.
 

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Credit Data Smart ushers in new era of credit scoring
It’s expected to promote healthy competition and improve credit knowledge of locals.
Privatisation deals drive M&A activity in Hong Kong
L’Occitane and China Traditional Chinese Medicine Holdings are among the companies delisting from HKEX.
Niche crisis pushes Hong Kong towards green burials
Companies may offer boat trips for scattering ashes as interest in green burials rises.