According to a recent study conducted by FIS and Oxford Economics, businesses across various sectors are incurring staggering losses averaging $98.5 million each year as a result of cyber threats, fraud, regulatory hurdles, and operational inefficiencies. The financial toll is particularly pronounced among technology companies, with insurance, financial services, and fintech sectors also heavily impacted.
The research highlighted cyber threats as a principal source of difficulties, with 88% of respondents citing it as a significant concern. Additionally, 79% of businesses reported facing fraud, while 65% acknowledged the complexities posed by regulatory demands. Other areas of tension included operational inefficiencies and payment friction, which further complicated the financial landscape for many organizations.
A concerning 37% of surveyed firms indicated that they encounter cyber threats on a daily basis, and 74% noted experiencing critical threats at least monthly. Despite recognizing the importance of fraud risk management, over half of the respondents expressed dissatisfaction with their existing fraud response strategies.
Interestingly, the study found that 75% of insurance companies prioritize employee training for fraud prevention — a stark contrast to the overall average of 48% across all sectors surveyed. The results also suggest that firms with dedicated fintech teams are better equipped to tackle operational frictions, with 82% of leaders implementing embedded finance solutions that contributed to an average sales growth of 8.5%. The findings underscore that a robust technology strategy, coupled with dedicated expertise, is essential for businesses aiming to mitigate risks and foster sustainable growth. For additional information on the study’s findings, please visit the sources: regulatory hurdles, tools for fraud detection, cyber awareness training, employee training, compliance, GenAI and ML, and automation benefits.