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Credit-card fraud may surge. Then what?

Digital intelligence solutions can help realize significant cost savings while preventing fraud and providing a pleasant customer experience.


After years of growth, financial institutions saw an enormous drop in credit card fraud over the last 12 months as fraudsters began to capitalize on stimulus checks and other low-hanging fruit during the pandemic.

But this trend may be brief. Banks will likely start to see a comeback of credit card fraud. Global financial losses related to payment cards are estimated to reach $35 billion in 2022; this doesn’t include the $130 billion that card-not-present (CNP) fraud could cost by 2023.

Banks can take initial steps to protect themselves and their customers, like enforcing requirements for CVV numbers and zip codes and training staff to be vigilant about phishing scams. But what else should banks be doing to prepare for the long-term security of their customers’ digital journey?

With 70% of organizations reporting that they will use technology as their first line of attack on AML and fraud, banks will need to explore new ways for innovation and digital transformation as part of the overall fraud prevention and detection process. New and advancing technology – including intelligent document processing (IDP), process intelligence and artificial intelligence – can tap into vast reservoirs of data to gain valuable insights.

Process excellence for frictionless experience

As processes become more automated, banks and credit unions become more vulnerable to fraud and other financial crimes. This often happens when inferior processes are automated – a bot typically performs the task it was designed to perform.

This is why it’s so important to dive deep into understanding the current state of “as-is” fraud prevention and investigation processes. Banks simply automating a process without improvement or examination of the current steps around fraud identification, investigation, reporting and resolution raises the risk of fraud vulnerability and poor customer experiences.

Financial institutions need to find that delicate balance between security and losing potential new customers who want a frictionless online experience. This is an imperative if financial institutions are to maintain a competitive advantage and improve customer lifetime value.

Digital intelligence solutions can help achieve significant cost savings while preventing not just credit card fraud but check, loan and payment authorization fraud as well. Digital intelligence enables you to identify shortcomings, bottlenecks and cost drivers in order to pinpoint the most impactful way to automate these processes. While business process automation provides an opportunity to save costs, the true value of effective digital transformation comes from the impact it can have on your ability to serve your customers better.

Fraud attacks are most likely to occur through process vulnerabilities and fraudulent documents, so it’s important to start with thorough process discovery and analysis, followed by automating paper-based processes with the ability to spot suspicious behaviors.

Credit application processes are often antiquated, with many bottlenecks and manual interventions that leave room for vulnerabilities. Advanced process intelligence capabilities can provide a comprehensive view of the end-to-end process and reveal risks, exceptions, errors and anomalies to help detect and prevent fraud.

Automating the capture of credit applications to extract critical information helps financial institutions reduce the time needed to deliver credit cards to customers. Using process intelligence as a foundation, you can identify inefficiencies and opportunities for automation and then measure the effectiveness of change.

For example, IDP automation enables banks and financial institutions to capture data, classify documents and extract information to validate that someone is who they say they are from credit card applications. This data, along with supporting identity documentation, can be quickly and easily entered into the lender’s database to verify the applicant and speed application approvals. Productivity increases and staff time is freed up to focus on more important activities.

Today’s tools for capturing and analyzing data can enable players in the industry to quickly process and understand data while continuously improving online experiences. Sophisticated digital intelligence technologies and massive amounts of data can help banks and credit unions visualize the entire credit process to pinpoint opportunities for changes and fight back against credit card fraud in innovative ways.

These efforts result is more trustworthy customer experiences for legitimate cardholders and extend digital barriers to stop criminals from trying to exploit vulnerabilities.

Cheryl Chiodi leads the financial services solutions team at ABBYY.