In 2023, authorized push payment fraud has become increasingly prevalent globally, with a particularly heavy impact in APAC. While it’s become standard practice to use AI to identify these intricate fraud patterns, fraudsters are also aggressively using new AI technologies including generative AI (genAI). To stay current, customers must be in a state of perpetual evolution, continuously refining and updating their enterprise fraud management (EFM) AI models. In APAC, countries such as China, India, Thailand, and Indonesia have ushered in a fresh wave of data privacy regulations that limit the ability of legitimate enterprises to obtain external data insights for effective fraud management — restrictions that fraudsters remain unburdened by. As a result of these trends, EFM customers in Asia Pacific should look for providers that have:

  • Strong data integration features. Customers expect vendors to integrate data rapidly and check its quality automatically, as data quality and quantity both significantly influence the accuracy of risk scoring. The ability to seamlessly integrate diverse external data sources is crucial, as fraud risks manifest across channels and business scenarios. Stricter data privacy regulations in APAC make it more difficult to obtain personally identifiable information; vendors that establish connections with comprehensive external sources of regulated data will gain a competitive edge.
  • Sophisticated, up-to-date AI and machine learning capabilities. AI technologies are constantly evolving, and customers are demanding advanced AI models for fraud management. Innovative vendors are developing new AI models: GenAI-based models can create intricate graphics to thwart bots and machines for know-your-customer purposes, and graph-based models are widely adopted in fraud investigations to analyze complex relationships and networks of criminal groups. In addition to competing on AI model sophistication, vendors should ensure that their models and algorithms are explainable and unbiased to meet the rising expectations of customers and regulators.
  • Differentiated user experiences. An EFM solution’s user experience is a pivotal distinguishing factor, as it can strongly influence the efficiency and effectiveness of fraud management pros. Organizations gravitate to solutions that offer greater automation, visualization in analyst workflows, and streamlined investigation and reporting capabilities. The incorporation of low-code or no-code features has emerged as a critical consideration for organizations selecting a model-building platform.

The great thing is that Forrester has shortlisted the seven most significant APAC homegrown EFM providers and researched, analyzed, and scored them on current offering, strategy, and market presence in our newly published report, The Forrester Wave™: Enterprise Fraud Management In Asia Pacific, Q3 2023. This evaluation shows how each provider measures up and helps security, risk management, and fraud management professionals select the right one for their needs.

If you are interested in digging deeper into the findings of the evaluation or want to discuss EFM in APAC more broadly, please schedule a guidance session or inquiry.