Fraud against Australian businesses on the rise, report finds

An extensive rise in fraud against Australian businesses has been revealed by a recent report spearheaded by Docusign in partnership with Entrust.

The report titled "The Future of Global Identity" highlights that 61% of Australian businesses surveyed are experiencing increased incidents of fraud. This encompasses identity theft, account creation fraud, and digital document forgery. The increase is attributed to several factors including the rise of digital transactions, customers' lack of awareness regarding security practices, and greater incentives for fraud linked to global financial pressures.

Through the survey, respondents identified the top fraud techniques threatening their operations. These include username and password authentication at 51%, sending sign-in links via email, SMS or push notification at 39%, manual ID checks conducted over the internet at 35%, single sign-on through trusted identity providers like Google or Facebook at 34%, and digital identity document verification at 30%.

As businesses are challenged with preventing fraud while ensuring a seamless customer experience, 65% of Australian respondents find it difficult to strike a balance between security and user convenience. This suggests a high priority on managing both aspects simultaneously. Despite the challenges, 81% of respondents view fraud prevention as a crucial area for investment, with a significant 82% already witnessing a reduction in fraud through identity verification technologies.

"Fraud is increasingly prevalent in everyday business operations, with 61% of respondents reporting a loss of over $1 million USD (AUD $1.6 million)," noted Ed Knott, Vice President, ANZ at Docusign. "It's clear that businesses want to input safer security measures, but there are concerns that user experience will be disrupted."

In response to the uptick in fraudulent activities, 66% of surveyed organisations in Australia (and 76% across the Asia-Pacific region) are increasingly exploring AI-based solutions for safeguarding their operations. These AI-driven identity verification solutions are credited with enabling Australian businesses surveyed to save an average of USD $8 million (AUD $12 million) by preventing identity fraud.

Interest in generative AI applications for fraud prevention is particularly high, with 71% of respondents believing it would be more effective than existing tools, including 34% who expect it to be significantly more effective. Apart from AI, biometric verification is also being considered as an additional safeguard, with 84% of businesses affirming its efficiency in reducing fraud risks, and 36% considering it much more effective than current measures.

Tony Ball, President of Payments & Identity at Entrust, commented on a common misconception, saying "A misconception about fraud prevention is that stronger security comes at the cost of user experience." He explained that modern identity verification solutions and adaptive authentication allow both aspects to coexist. "End-users can verify their identity with a quick biometric selfie, while fraud checks such as device recognition, AI-powered deepfake detection run in the background. Adaptive authentication completes the identity lifecycle security and further enhances security by adjusting requirements based on risk signals, ensuring protection without unnecessary friction."

Australian businesses are reportedly realising the benefits of additional security measures, with 80% of respondents noting that new verification processes have improved customer perceptions and user experiences.

"This global study reinforces a critical truth: robust security measures can be implemented without sacrificing customer experience," continued Ed Knott, VP, ANZ at Docusign. "The integration of AI in fraud prevention is not just a necessity but a catalyst for broader operational efficiency. By implementing intelligent, low-friction security measures that are part of the Docusign ID Verification portfolio, businesses can create the right balance between building trust, protecting customers, and driving long-term engagement in an increasingly digital world."