With Banks and Credit Unions Incurring Most of The Losses
New data compiled by LexisNexis show the cost of fraud incurred by financial institutions is spiraling out of control. Overall, the costs associated with all frauds rose by 20% last year (2022), with financial institutions bearing the brunt.
In fact, for every $1 stolen in a fraud attack, banks and credit unions found themselves on the hook for an average of $4.36 in costs. This is up from an estimated $4.00 in losses-per-dollar in 2021, and $3.64 per-dollar in 2020.
To give this wild growth in fraud costs some perspective, a successful $10,000 bank fraud in 2020 would have cost the average victimized institution $36,400 to cover the losses….
But last year, 2022, that same fraud would’ve cost the victimized institution $43,600. And it’s only getting worse. This year, those costs could rise to a staggering $50,000.
It’s frightening, for sure. But remarkably, the LexisNexis study showed that since 2020, 45% of institutions have now integrated more modern fraud detection and prevention systems, as well as better cybersecurity protocols. Prior to 2020 only 28% of institutions had done this.
Yet, fraud costs continue to rise, even when the number of institutions “modernizing” their fraud systems has nearly doubled.
Why?
Well, there’s two reasons, really. First, fraudsters are getting better at their craft. And second, most institutions are still using ill-equipped fraud solutions. And this includes many of the institutions who believe they’ve “modernized” their systems…
But haven’t, really.
Now, while It’s impossible to stop the “progress” the fraudsters are making, it is possible to get ahead, and potentially stay ahead of them.
But it takes a truly revolutionary fraud detection and prevention system to do it.
It takes the remarkable capabilities of real-time artificial intelligence.
it was once thought that only large, well-capitalized institutions have the resources to incorporate a technology like this. However, recent advances in Ai have made real-time fraud detection and prevention financially accessible to institutions of all sizes and capitalizations.
While some institutions may believe they’ve upgraded and modernized their systems, the growth in fraud costs shows otherwise.
Any fraud detection and prevention system that does not operate, analyze and report in real-time is already obsolete. Simply put, there is no substitute for real-time Ai driven protection.
There’s no substitute for ToolCASE.
ToolCASE offers the world’s most advanced transactional fraud system available, anywhere. Our real-time, Ai-powered system, RembrandtAI, has already saved financial institutions hundreds of millions in fraud losses…
And ToolCASE’s RembrandtAi can help do the same for yours, no matter how bad 2023 gets, and no matter how much fraud costs rise at “other” institutions.
To Receive a comprehensive demonstration of the remarkable capabilities of RembrandtAi, and to see how it’s helped financial institutions of all sizes save millions in fraud costs, visit us at ToolCASE.com
Or, email us at info@toolcase.com
