The future of online fraud detection lies in the fusion of cybersecurity and fraud prevention. This merging of markets is expected to revolutionize the way companies combat fraud, meaning product leaders must adapt and innovate in order to stay ahead of the curve and protected from sophisticated online threats.
The Emerging Tech: Security — Cyber-Fraud Fusion is the Future of Online Fraud Detection report from Gartner underscores the necessity for businesses to integrate their cybersecurity and fraud prevention teams. Read on to dive into some of the key recommendations from Gartner.
Markets are Converging into a Cyber-Fraud Fusion
Whether risk comes from an internal breach or consumer-lead threat, they both result in compromised accounts. This can expose sensitive company or customer data, creating an opportunity for additional attacks across connected platforms. The downstream impact of these attacks not only leads to disruption to the business, but also can cause significant financial loss or a damaged customer experience. Cybersecurity leaders are beginning to see how these threats are intertwined. Research shows that nearly 70% of security leaders view account takeover attacks as the greatest concern to their organizations.
Gartner notes, “As further evidence of this trend, Gartner has noted an increasing number of products and services that cross-pollinate between the online fraud prevention and cybersecurity markets. Product categories that were initially introduced for the cybersecurity market (B2B use cases) are now finding increased traction in online fraud prevention (B2C use cases) and vice versa. To date, most large organizations have kept budgets aligned to traditional buying centers. However, Gartner fully expects cybersecurity and fraud prevention budgets to be combined as stakeholders and teams using these tools become increasingly aligned (including involved in vendor evaluations and selection).”*
Fraud and Cybersecurity Teams are Merging
According to Gartner, “Forward-leaning organizations are beginning to merge teams, tools and processes used by cybersecurity and fraud prevention teams to break down operational silos and create a more comprehensive approach to combating online fraud.” Traditionally, these teams worked separately, leading to duplicated efforts and gaps in prevention. Now, forward-thinking organizations are recognizing the connections between these disciplines and are combining resources and budgets to create a unified strategy. This involves merging teams, tools, and processes to break down operational silos.
Gartner predicts that by 2028, 20% of large enterprises will shift to cyber-fraud fusion teams to combat internal and external adversaries targeting the organization, up from less than 5% today.
Per Gartner, “Organizations worldwide have begun merging cybersecurity and fraud prevention teams. This trend will grow through the remainder of the decade. Product leaders must prepare now to lead this shift in positioning and portfolio, outcompete peers, differentiate in the market, and address buyer demands.”
Tools are Getting More Integrated
For a more comprehensive approach to user behavior monitoring, businesses are adopting an approach that involves expanding product offerings to include complementary solutions like digital risk protection services and integrating with security tools.
Gartner recommends businesses “build long-term roadmaps to account for the merging of cybersecurity and fraud prevention teams by expanding beyond traditional online fraud detection (OFD) market offerings to include highly complementary products (such as digital risk protection services [DRPS]) that large customers are already using.”
“Integrate with security tools deployed within technical infrastructure (such as content delivery network-based API inspection tools) to monitor user behavioral activity across the entire user journey. Combine this intelligence with use-case-based point-in-time inspection solutions from OFD platforms that look at anomalies and historic analytics.”
Driving Innovation and Differentiation
Gartner highlights that “vendors that can prioritize integrating intelligence sources from across the cyberthreat landscape to create a comprehensive end-to-end vision that delivers a multilayered approach based on cybersecurity, threat intelligence and online fraud prevention will find stronger resonance in the market.” Sift’s AI-powered fraud decisioning platform is ideally positioned to lead this transformation. By adopting a holistic approach and leveraging advanced technologies, Sift helps businesses stay ahead of risk and protect their bottom line.
As the market evolves, Sift continues to deliver innovative AI and machine learning solutions to address modern risk management challenges. By staying ahead of emerging trends, Sift ensures that companies have the tools to outcompete and differentiate themselves in the market.
The Sift Platform analyzes vast data to identify patterns and predict fraudulent behavior throughout the user journey. By combining risk intelligence, identity and access management, and information security, Sift provides a multi-layered defense that adapts to evolving threats. Sift also breaks down operational silos by providing comprehensive insights that bridge the gap between cybersecurity and fraud prevention. By integrating with existing security tools and leveraging AI-driven analytics, Sift empowers organizations to detect and respond to threats more efficiently.
Get complimentary access to the full Gartner report for more recommendations on why product leaders should build long-term roadmaps for the merging of cybersecurity and fraud prevention teams by expanding beyond traditional online fraud detection market offerings.
*Gartner, Emerging Tech: Security — Cyber-Fraud Fusion is the Future of Online Fraud Detection, Dan Ayoub, Pete Redshaw, 7 September 2023. GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.