As digital trust and fraud prevention evolve, Sift is at the forefront with groundbreaking innovations, industry accolades, and expert insights. Securing top spots in G2’s Spring 2024 Grid® Reports for Fraud Detection and Risk-Based Authentication, Sift continues to shape the future of fraud prevention and digital trust. By exploring the transformative impacts of AI on global fraud and continuing to create innovative fraud solutions, Sift closed out the second quarter of 2024 on a high note, solidifying its position as a leader in the industry.
Join us as we recap the key highlights and achievements from Q2, including our takeaways from influential events like Money20/20, important findings from our latest Index report, and advancements in AI-powered solutions like RiskWatch.
Emerging Fraud Trends
Report: Two-Thirds of Businesses Face AI-Fueled Fraud Regularly
As increasingly becomes part of our daily lives, concerns about its negative applications among consumers and fraud professionals are growing. In Sift’s newest Q2 Digital Trust Index, over half of surveyed fraud and risk professionals reported that they experience AI-backed attacks on their businesses on a daily or weekly basis, underscoring the need for companies to adopt enhanced technology to combat these threats.
“AI is rapidly being adopted as a fraud tool, and businesses that haven’t begun leveraging this technology are at a heightened risk of exploitation,” says Brittany Allen, Senior Trust and Safety Architect at Sift. “Now is the time for businesses to invest in AI internally, as it’s the only technology capable of countering the threats posed by AI itself.”
Read the full Q2 Digital Trust Index here.
Sift CEO on How the AI Transformation is Reshaping Global Fraud
“What we’re seeing now is an era of AI transformation,” explained Kris Nagel, Sift’s CEO in his most recent article focusing on the profound impact of AI on modern commerce and the escalating risks associated with its adoption. This emerging technology is further disrupting how businesses and consumers interact, and changing how they define trust.
“The reality is that AI is both leveling and expanding the playing field between competitors, as well as between company and criminal. It’s democratizing access to advanced computing, lowering barriers to competitive intel and data, and creating new ways for consumers and brands to interact. But with AI’s unbridled potential comes significant risk that’s constantly changing—making it especially difficult to determine where to invest and where to hold back on adding AI in-house.”
Read Kris’s full article here.
Fraud, AI, and Pig Butchering with Sift’s Armen Najarian
This quarter, Sift CMO Armen Najarian sat down for an interview with the PayPod podcast to discuss the evolving landscape of fraud prevention and cybersecurity. In the episode, Armen shared his journey from coffee shop owner to tech executive, shed light on emerging fraud patterns, and explained how Sift uses AI to combat online fraud.
Armen also reflected on AI-driven fraud and its impacts:
“18 months ago, ChatGPT wasn’t in the consumer conversation. It is here and now and every ML model out there is getting smarter by the day. These are being translated into tools that the fraud actor community is all over, and has been for many months. So especially, in the last 18 months, or last 12 months, it’s just the game has changed fundamentally. So the velocity of new attack types, attack sophistication, and scale of attacks, is like nothing we’ve seen before.”
Listen to the full interview here.
New Sift Capabilities
Expanded Data in Sift’s Fraud Industry Benchmarking Resource (FIBR)
The second quarter of 2024 also brought exciting new developments to Sift’s Fraud Industry Benchmarking Resource (FIBR), including new metrics and additional exclusive data only available to Sift customers.
Starting in May, Sift expanded FIBR to include account takeover (ATO) attack rates and two-factor authentication (2FA) trend data, providing deeper insights into digital risks. This enhancement, powered by Sift’s Global Data Network, helps businesses benchmark their fraud prevention strategies more comprehensively.
In June, Sift announced additional data enhancements to FIBR, now exclusively available to our customer community through the Sifters platform. In particular, this data provides insights into median order amounts, fraudulent order trends, and chargeback reasons by industry, helping businesses improve fraud detection and make more informed risk decisions.
Learn more about the key fraud insights provided by FIBR and the network of fraud fighters collaborating in our Sifters community.
Introducing RiskWatch, Intelligent Cruise Control for Fraud Teams
Also in Q2, Sift introduced RiskWatch, marking a significant advancement in fraud prevention and risk decisioning for enterprises, which employs AI-powered scoring and dynamic thresholding to autonomously adjust block and review rates in real-time.
This innovation not only enhances accuracy and speed in detecting fraudulent activities, but also optimizes operational efficiency by reducing manual interventions.
“A standout advantage of RiskWatch is real-time adaptability,” explained Raviv Levi, Chief Product Officer at Sift. “During a fraud attack or other significant shifts in user behavior, RiskWatch automatically adjusts block rates to capture emerging risky events as they happen. When the dust settles, risk thresholds return to their pre-fraud levels, which can be easily fine-tuned to meet a business’s specific needs.”
Learn more about this innovation in our announcement blog and listen to Sift CMO Armen Najarian talk about RiskWatch’s benefits in an interview with FinTech BoostUp.
Insights from Events
Key Takeaways from MRC Vegas
In late March, the Sift team showcased and presented at Merchant Risk Council (MRC) Vegas, one of the most influential events in the payments and fraud prevention industry. Sift co-hosted an event with partner Incode, conducted a Fraud 201 Workshop with Sift Senior Trust and Safety Architect Brittany Allen and Paul Brock from Apple, and unveiled findings from the Q1 Sift Index report.
After the event, we recapped our key takeaways from the conference, including the impact of shifting consumer behavior (like first-party misuse) on fraud, particularly among Gen Z, and how the growing use of AI by fraudsters is driving more businesses to adopt AI/ML-based tools to counteract these threats.
See what else we learned from the event in our full recap.
What’s New in Fintech, Fraud Trends, and Payments from Money20/20 Europe
In June, Sift attended Money20/20 in Amsterdam, one of the largest gatherings of leaders across the fintech ecosystem in the region and beyond. Sift’s Senior Product Marketing Manager Stephanie Trinh recapped the key takeaways from the conference and the topics which were top of mind for fintech and payment providers. Topics included:
- AI fraud trends in fintech: AI-driven fraud is escalating, fueled by generative AI and the dark web, posing a significant threat to the fintech sector.
- The rising demand for instant payments: Instant payments are becoming crucial, driven by consumer demand for convenience and regulatory changes.
- Strategies for fighting fintech fraud: Protecting consumer trust across the entire customer journey and leveraging AI for real-time risk analysis is crucial.
See what else we learned from Money20/20 in Stephanie’s summary.
Company News and Recognition
Introducing Steve Love, Sift’s New Chief Financial Officer
In May, Sift welcomed our new Chief Financial Officer, Steve Love, to the company. Steve brings over 30 years of financial leadership experience at high-growth SaaS and enterprise software companies, most recently serving as the CFO at digital insights platform Heap. Love was drawn to Sift’s commitment to enhancing customer experiences, fraud operations, and strategic growth for clients, emphasizing the importance of proactive and adaptive fraud solutions, especially in the AI era.
In Love’s own words:
“What really drew me to Sift was the integral role we hold for our customers. Unlike many B2B companies where solution churn risk is high and tech stacks are temporary, Sift is an essential component of customer experience, fraud operations, and strategic growth for every business we support. Our users see value across functions while revenue and reputations are kept secure, and trust that the investment they’ve made in Sift is one made in the growth of the business.”
Get to know Steve by reading his introductory blog here.
Sift Named a Strong Performer in Enterprise Fraud Management by Forrester
This quarter, Sift celebrated our latest recognition by Forrester Research, having been recognized as a Strong Performer in the latest Forrester Wave™: Enterprise Fraud Management, Q2 2024, following our previous leadership acknowledgment in the Forrester Wave™: Digital Fraud Management, Q3 2023.
The report highlighted Sift’s excellence in segmentation, behavioral profiling, and partner support, with high scores in the categories of vision, partner ecosystem support, and service offerings.
According to Forrester, “Sift showed a convincing EFM vision, support for partner onboarding and management, as well as a strong ecosystem of supporting services and products. Managing segmentation of customers and entities based on attributes and managing behavioral profiles is versatile. New account and cyber (digital) fraud management capabilities are ahead of others in this evaluation.”
Read more about this important recognition here.
Sift Surges to #1 Position in Spring 2024 G2 Reports
The spring brought more industry accolades, with Sift achieving top rankings in G2’s Spring 2024 Grid® Reports, securing the number one position in Fraud Detection and Risk-Based Authentication categories. This recognition marked Sift’s 12th consecutive quarter being named a G2 Leader in Fraud Detection, 17th consecutive quarter for E-Commerce, and 6th consecutive quarter for Risk-Based Authentication.
“Sift’s outsized performance in the G2 quarterly reports reinforces the value of our AI-powered fraud platform and our commitment to customer success,” said Armen Najarian, Sift’s Chief Marketing Officer. “While adversaries exploit AI to cause harm to consumers and businesses, Sift empowers customers to ‘fight fire with fire’ to stop fraud and grow fearlessly.”
The G2 awards are based on the authentic reviews of over 200 Sift users on G2, the world’s largest and most trusted software marketplace. See what our customers have to say about us by visiting Sift’s G2 profile.
