Fraud costs businesses far more than the amount lost in a fraudulent transaction. From hours spent investigating suspicious cases to lengthy processing times and operational costs, the true financial impact can be difficult to quantify.
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According to fraud-detection specialist Finovox, many organisations still rely on manual spreadsheets to understand whether their fraud-prevention investments are paying off, creating additional administrative work for their teams.
The scale of the challenge is significant. According to a study carried out by Finovox in collaboration with polling institute Selvitys, fraudulent documents can represent approximately 3% of document flows in banking and 5% in insurance, with an estimated value of around €5,000 per fraud case in banking and €500 in insurance.
To address this challenge, Finovox is introducing a new ROI measurement capability that enables organisations to connect fraud decisions with their financial impact and monitor the evolution of avoided losses and operational efficiencies directly within its reporting environment.
Additionally, the cost extends beyond the fraud itself. Investigating a suspicious case manually can take approximately one hour, compared with around three minutes using Finovox’s new investigation tool.
“You can’t effectively tackle a problem if you don’t understand how much it is costing your business. Fraud is no different. Yet many companies still struggle to quantify its true financial and operational impact. Our new ROI tool is designed to change that, giving businesses a clear view of the losses they are preventing and the value their fraud-prevention efforts are creating,” said Marc de Beaucorps, Co-founder and CEO of Finovox.
By making the impact of fraud prevention easier to measure, Finovox aims to help businesses move beyond simply detecting fraud to understanding what it is actually costing them and how much they can save by preventing it. This gives fraud and risk teams a clearer way to demonstrate their contribution to the wider business while reducing the manual work traditionally required to calculate ROI.