New Forbes Insight Report Reveals Almost 70% of Banking and Finance Leaders Believe AI-Powered Fraud Will Threaten the Security of User Transactions in 2024

The Forbes survey reports 65% of business leaders have added multifactor authentication to support fraud prevention and customer protection

SOMERSET, N.J., March 27, 2024 (GLOBE NEWSWIRE) -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today announced its participation with Forbes Insights on a new report, Security Should Be Simple: Your Road Map for Preventing Fraud & Building Trust. The Forbes Insights report highlights growing pressures and expectations for fraud prevention and user authentication based on survey results from 200 business leaders in banking and financial services. Key findings include a majority of respondents (68%) expect to increase spending on fraud detection, nearly half (46%) advocate for updates to security protocols for competitiveness, and over half (51%) identify the challenge of balancing security with user convenience. This is the latest original research from Forbes Insights, which provides actionable intelligence for C-Suite executives and other industry participants.

“Banks and financial institutions are grappling with the dual challenge of enhancing protection while ensuring a seamless user experience,” said Adam Lowe, Chief Product and Innovation Officer at CompoSecure. “You often see this dichotomy that either it’s secure or it’s hard, and anything that’s hard is something users won’t do. The technology is now available to make the user experience truly seamless and address password problems that only create security holes and increase customer frustration.

Key insights from the report include:

• Customer Experience – Improving customer experience is a main driver in implementing new security techniques. The Forbes Insights research shows that companies want to prioritize the customer experience with eight of 10 respondents agreeing that creating a better experience for customer transactions is a key competitive advantage in the industry, and 79% agreed that customer experience is top of mind as they design new security protocols.
• AI-Powered Fraud – Proactive measures are crucial to combat emerging threats like AI-powered fraud and social engineering, highlighting the need for continuous innovation in security strategies. Currently, 54% of survey respondents are contending with AI-powered fraud, 50% with phishing attacks and 38% with social engineering, while projections for one year from now indicate a substantial rise to 69%, 44% and 45% respectively.
• Multi-Factor Authentication – Despite widespread adoption, multifactor authentication (MFA) faces challenges from sophisticated scammers, necessitating innovative solutions such as FIDO authentication and hardware keys. In fact, 62% of business leaders have future plans for enhancing cybersecurity via hardware authentication (e.g., key card, fob , USB drive).