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Every Rand Lost to Fraud in South Africa Costs Firms R3.64 According to LexisNexis True Cost of Fraud Study

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LexisNexis® Risk Solutions has unveiled the findings of its 2023 LexisNexis® True Cost of Fraud Study – Europe, Middle East and Africa. The annual report, based on a commissioned survey conducted by Forrester Consulting, reveals that businesses in EMEA now bear a cost of fraud that is 3.90 times the face value lost in fraudulent transactions.
In South Africa, 49% of companies reported an increase in fraud in the 12 months prior to the survey, while organizations incur an average cost of R3.64 (R3.10 for retailers and R4.52 for financial institutions) for every rand lost to fraud. These costs encompass financial losses due to fraud, as well as internal labor expenses, external costs, interest and fees, along with the expenses associated with replacing or redistributing lost or stolen merchandise.
While rapid adoption of digital payments improves payment experiences, it also exposes numerous systems and channels to more innovative fraud attacks. Across EMEA, digital channels account for 52% of overall fraud losses, surpassing physical fraud for the first time. Consequently, cybercriminals exploit the anonymity of digital, cross-border transactions to execute fast and untraceable fraud. Additionally, the rise of scams and the use of technology, such as artificial intelligence (AI), expands cybercriminals’ ability to exploit both consumers and businesses.
The study also reflects the evolution of criminal tactics. More than half (52%) of businesses in EMEA identify the rise of synthetic identities as the primary challenge in customer identity verification. Fraud remains a widespread problem for businesses, exerting pressure not only on financial resources but also impacting overall operational efficiency, customer trust and reputation.
“It is self-evident that new forms of fraud increase the risk of financial losses for consumers and businesses,” said Jason Lane-Sellers, director, fraud and identity, EMEA at LexisNexis Risk Solutions. “The issues facing businesses become even more challenging due to the fraud multiplier effect, where the losses experienced by organizations continue to increase and far exceed the lost face value in any transaction. Preventing fraud requires a multi-layered approach throughout the customer journey.”
Key Findings from the True Cost of Fraud Study – Europe, Middle East and Africa:

Commercial Impact: Fraud significantly affects how customers perceive and interact with businesses. Eighty-seven percent (87%) of South African respondents report that fraud has influenced customer satisfaction compared to 75% across EMEA. Ninety-three percent (93%) notice its impact on customer conversion, higher than the 71% recorded in EMEA. These findings demonstrate that South Africa has a particular sensitivity to customer experience. Any impact of fraud or fraud prevention techniques can affect customer satisfaction and lead to broader impacts on companies’ bottom line, so balancing prevention with appropriate customer experience controls is essential.
Evolving Fraud Management Practices: Criminals constantly innovate. This dynamic nature of criminal behavior means that fraud and its associated costs are not static threats that businesses can simply diminish. For instance, new payment methods provide fraudsters with opportunities to exploit vulnerabilities in the retail sector. Financial institutions are realizing increasing trends in identity theft, scams and digital wallet fraud.
Moving Forward: Given the rising threat of fraud and cybersecurity risks, organizations should embrace forward-thinking fraud management and authentication solutions. This involves leveraging the capabilities of technologies such as AI, machine learning, and biometric and behavior-based authentication methods.

Methodology: The True Cost of Fraud Study – Europe, Middle East and Africa conducted a survey of 1,845 global fraud management decision-makers at financial institutions and retail companies, including 55 in South Africa. Data collection and survey questions reference a 12-month period. The study leverages data and analysis to understand the current state of fraud and the challenges associated with digital payments in emerging markets. This information comes from a commissioned study conducted by Forrester Consulting on behalf of LexisNexis Risk Solutions in August 2023.
Download the LexisNexis® True Cost of Fraud Study – Europe, Middle East and Africa.
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Innovation showcase displays growing influence

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A news report from China Daily:
The 2024 ZGC Forum in Beijing showcased a wide range of latest technological innovations.
The event ran from April 25 to 29 and comprised 128 activities, including forums and conferences, technology exchanges, technological achievement releases and technology competitions.
More than 120 global top scientists and academies from home and overseas delivered speeches at the 2024 ZGC Forum Annual Conference Plenary Session and 60 parallel forums to share their insights into frontier technologies and related industries.
Of the speakers, more than 30 percent come from overseas, including over 10 Nobel Prize, Fields Medal, and Turing Award winners.
Among those in attendance were also representatives from 218 foreign government departments and international organizations, and 162 domestic and international universities as well as participants from across the country.
The business community in particular showed keen interest in getting involved, with executives of 225 venture capital institutions, more than 100 unicorn companies, and over 10,000 tech businesses participating.
The 2024 Zhongguancun International Advanced Technology Competition received 1,280 projects from 74 overseas countries and regions, accounting for more than 40 percent of the total number of entries.
During the 2024 Zhongguancun International Technology Trade Fair, technology matchmaking sessions designed for cooperation with multiple countries such as the United Kingdom, Italy, South Korea and Japan were lined up.
In total, 309 cooperation projects were signed during this year’s ZGC Forum, with a combined contract value of 67.32 billion yuan ($9.30 billion).
The ZGC Forum covered a variety of sectors. In the field of artificial intelligence, diverse dialogues were conducted around hot topics such as model architecture innovation, AI ethics and safety, and embodied intelligence to enhance visionary research and assessment.
In the field of life sciences, significant cutting-edge technological achievements were announced focused on areas such as brain-machine interfaces and synthetic biomanufacturing.
When it come to space science, in-depth discussions were held around the extreme cosmos, ripples in spacetime, and other areas, and the latest technological achievements like the Zhuque-2 carrier rocket were released.
In addition, a series of high-level research reports were released, which were “of significant importance for grasping global trends at the forefront of science and technology”.
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Second global AI safety summit faces tough questions, lower turnout

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The Second Global AI Safety Summit recently convened, confronting significant inquiries and experiencing a decline in participation compared to previous events. The summit, aimed at addressing crucial concerns regarding the safety and ethical implications of artificial intelligence (AI), encountered notable hurdles and a diminished turnout.
Despite the lower attendance, the summit faced tough questions regarding the future trajectory of AI development and its potential impacts on society. Key issues discussed included the ethical considerations surrounding AI deployment, the need for robust safety measures, and strategies to mitigate the risks associated with AI systems.
Organizers expressed a commitment to fostering open dialogue and collaboration among stakeholders to address these challenges effectively. While acknowledging the complexities involved, they emphasized the importance of continued engagement and concerted efforts to ensure the responsible development and deployment of AI technologies.
Although the summit experienced a decline in attendance, participants remained dedicated to advancing the discourse on AI safety and ethics. Their contributions and insights are integral to shaping policies and frameworks that prioritize safety, fairness, and transparency in the rapidly evolving AI landscape.
As the summit concluded, organizers reiterated the importance of ongoing discussions and collaborative initiatives to navigate the ethical and safety implications of AI effectively. Despite the challenges encountered, the event served as a crucial platform for stakeholders to engage in meaningful dialogue and drive progress towards a safer and more responsible AI future.
Source: reuters.com
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Intel unveils AI-Platform Innovation for Paris 2024

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Intel, a Global Olympic Partner, has revealed an array of AI-driven innovations set to debut at the Olympic and Paralympic Games Paris 2024. These advancements, fueled by Intel’s hardware and software, aim to elevate engagement levels for fans, organizers, athletes, and viewers worldwide.
The introduction of these AI-driven technologies promises to deliver immersive and interactive on-site experiences while also advancing universal accessibility. Additionally, they serve as a testament to how AI can enhance Olympic broadcast coverage.
Sarah Vickers, head of Intel’s Olympic and Paralympic Games Office, expressed, “The Olympic and Paralympic Games represent the pinnacle of athletic achievement, where athletes continually redefine what’s possible. This summer, Intel is furthering its mission of integrating ‘AI Everywhere’ through Intel solutions at Paris 2024, showcasing the profound potential of technology and AI to craft immersive and interactive experiences at the Olympic and Paralympic Games Paris 2024, reaching millions worldwide.”
Ilario Corna, Chief Information Technology Officer at the International Olympic Committee (IOC), emphasized the transformative impact of Intel’s AI-powered solutions: “Our partnership with Intel has propelled us into a realm where emerging technologies, driven by artificial intelligence, are reshaping the landscape of sports for spectators, athletes, IOC staff, and partners. Through their AI-powered solutions, Intel has enabled us to deploy AI faster and more efficiently than ever before. Together, in Paris, our collaboration will revolutionize the Olympic experience, embodying our shared commitment to leveraging sport for a better world.”
Source: olympics.com

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