More than half of businesses are experiencing the same or more fraud losses than they were one year ago. And fraud continues to be a major concern, as 72% of respondents in this year's Experian Global Fraud and Identity Report said that fraud is a growing concern.
Plus, it seems that retailers are denying more transactions than necessary in order to prevent fraud, rather than doing a better job of identifying true customers. In fact, 71% admitted to denying more transactions than they should.
And 84% of business leaders said that their fraud risk mitigation could be reduced if they were certain about customers' identify.
But the line between security and being recognized is thin. Nearly seven out of 10 consumers said they like security protocols in place for online transactions, but only if they do not disrupt the experience.
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And these hurdles can cost retailers a lot of business. One out of every four consumers reported abandoning a transaction because setting up a new account required too much information. And 35% of respondents said they would transact more online if there were fewer security hurdles.
Still, only 40% of businesses are very confident in their ability to detect fraud and 75% expressed interest in more advanced measures for fraud detecting that do not have impact on the digital customer experience.
Breaking down the study by region, the U.S., India, South Africa and China make security a higher priority than other parts of the world. But some of these countries are okay with friction in the online process if it means extra security, namely India and South Africa.