Almost three quarters of banks in the Asia Pacific (APAC) region forecast fraud to increase this year, according to a report by FICO.
The study polled 50 executives from financial institutions in the region.
Of those polled, 54% expected fraud to rise moderately in 2019 while 20% predicted a significant increase.
The respondents were found to be most concerned regarding card-not-present and application fraud this year.
Over 50% of the banks were found to block cards on the first fraud alert.
The figure is stable compared to the 2017 survey.
Only 6% were found keeping the card open while trying to confirm fraud, a figure that has doubled since the previous survey.
Also, 80% of APAC banks’ fraud departments said that they take overall fraud losses as the main indicator.
On the other hand, just 6% of the banks considered customer satisfaction as their key metric.
FICO president of APAC Dan McConaghy said: “The volume and velocity of transactions is growing in Asia.
“Over 50 percent of global online retail sales in 2018 originated from the region. This growth in ecommerce along with the efforts of banks to digitise more services has seen a change in fraud risk.
“Dealing with an ocean of transactions means that AI and machine learning are essential when it comes to detecting fraud.”