Bigger teams won't solve online payments challenges, unless automation is combined.
Payments and fraud teams are facing unprecedented pressure as online payment fraud continues to rise. The challenge is compounded by the need to comply with stringent regulations while managing an increasing volume of transactions. This has led to significant backlogs, operational disturbances, and a strained workforce within many companies.
Recent reports highlight the scale of the problem: online payment fraud has surged by 59% in the past year alone. To cope, online businesses are expanding their fraud teams by 58% in the UK, rising to 80% in Germany.
However, simply adding more personnel isn’t a sustainable solution. The complexity and volume of fraudulent activities are outpacing the capacity of these teams, leading to burnout and inefficiency.
This often results in delayed responses to legitimate transactions, creating friction for customers and potentially damaging brand reputation. For instance, slow payment processing or unresolved disputes can lead to customer dissatisfaction, reduced loyalty and ultimately, lost revenue. Moreover, strained teams can lead to high employee turnover rate, and a loss of experienced personnel.
However, addressing these issues requires more than just adding personnel; it demands smarter tools and better strategies. Automation and advanced fraud detection technologies are critical in managing the growing demands placed on fraud and payments teams.
Automated income and card verification are perfect examples as they drastically reduce the manual workload on fraud teams. By digitising AML and KYC processes, businesses can speed up transactions, allowing players to engage faster with the platform while reducing the risk of fraud. This not only increases operational efficiency but also enhances user experience by minimising the friction during the onboarding process.
In a world where the cost of fraud is escalating, and compliance requirements are becoming more stringent, businesses must evolve their approach to stay ahead of the curve. By automating tedious processes and leveraging real-time data, businesses can focus on what truly matters: delivering a seamless, secure, and enjoyable experience for their customers.
