New global survey by Heidrick & Struggles, BCG, and INSEAD, reveals growing confidence in sustainability governance, but boards and CEOs still lack confidence in each other’s leadership

LONDON, Nov. 19, 2024 /PRNewswire/ — Heidrick & Struggles (Nasdaq: HSII), a premier provider of global leadership advisory and on-demand talent solutions, has teamed with Boston Consulting Group (BCG) and the INSEAD Corporate Governance Centre, to publish a report exploring how boards are responding to complex trends and disruptions they currently face. Boards and Society: How Boards Are Evolving to Meet Challenges from Sustainability to Geopolitical Volatility reveals boards have made meaningful advances to address sustainability topics, but are less confident when it comes to their understanding of other issues such as the rising importance of generative AI, intensifying trade and geopolitical disruptions. These four interconnected pillars are forcing directors and CEOs to navigate an increasingly unpredictable environment filled with conflicting and often politically charged demands.   

Additionally, the report shows evidence of simmering discord among company leadership on how best to enhance competitiveness amid the challenges they face.

Key Findings from the Boardroom

• 77% of boards believe their company has a responsibility to address sustainability concerns
• 36% feel prepared to leverage the disruptive potential of AI
• 37% believe their company has a sufficient strategy around geopolitical risk
• 29% of directors do not have faith in their CEO to navigate uncertainty
• 26% of CEOs do not have faith in their board’s effectiveness
• Half of respondents are not confident their company is equipped to identify new threats and opportunities related to sustainability, generative AI and geopolitics

The report reveals that 77% of the global board members surveyed believe their company has a responsibility to address societal concerns, although more than half (54%) believe that business objectives should remain the primary focus. In contrast to this enthusiasm around sustainability, only 36% of directors feel prepared to leverage the disruptive potential of AI, while just 37% agree that their companies have sufficient strategies in place to manage geopolitical risks.

These findings highlight an urgent need for greater balance between traditional governance with forward-looking strategies and increased investment in board competency. Despite lower levels of confidence for the prevailing risks and emerging technologies of our time, it is encouraging to note that more than 60% of directors stated that their boards are “leaning in” on risk management, suggesting a desire to tackle these challenges head on, regardless of their complexity.

Lack of Confidence Amid Growing Complexity
In a concerning indication of division within the boardroom, the new report reveals that 29% of directors lack confidence in their CEO’s ability to navigate disruption and boost long-term value. Meanwhile, a comparable number of CEOs (26%) are equally skeptical of their board’s effectiveness, reflecting an increasing tension between top leadership teams grappling with a more complex and diverse range of issues than ever before.

The report also finds that roughly half of directors are not confident their company is equipped to identify new threats and opportunities related to sustainability, generative AI and geopolitics, nor are they able translate them into a competitive advantage. As global business landscapes continue to shift, the ability of boards to stay cohesive, align with leadership, and adapt to new challenges with innovative corporate strategy will be more critical than ever. Effective governance that embraces both foresight and resilience will be key in turning these disruptions into opportunities, allowing businesses not only to survive but to thrive in an increasingly volatile world.

Commenting on the findings, Jeremy Hanson, Partner with Heidrick & Struggles and Co-author of the report, commented: “While it is encouraging that boards are stepping up on sustainability, this year’s survey reveals tensions between directors and management regarding each other’s capacity to navigate disruption. With so much at stake—and an increasing complexity to unpack—alignment between board directors and management isn’t just a best practice; it’s essential for addressing both today’s challenges and those of the future. Importantly, alignment does not mean boards should shy away from constructive debate with management. In fact, fostering open, even difficult, conversations is crucial for boards to reach resilient, well-rounded decisions in today’s demanding environment.”

Sonia Tatar, Executive Director of INSEAD Corporate Governance Centre, said, “Boards today can benefit from moving from being reactive to proactive. Beyond understanding disruptions, they can focus on looking ahead—anticipating future shocks and potential risks and finding ways to capitalize on the emerging trends to leverage opportunities. By translating insights that inform decision-making into strategic actions, they will be better positioned to guide companies in becoming more resilient and navigating change effectively.” 

Also commenting on the report, David Young, Managing Director and Senior Partner of BCG added: “Boards are facing new and increasingly complex challenges, amid geopolitical uncertainty, rapid advances in technology, and continued concerns over the impact of climate change. But boards have made notable progress in tackling sustainability–and now there is opportunity for them to learn from these efforts as they engage in deep conversations with executive leadership to confront this expanding agenda.”

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Media Inquiries:
Heidrick & Struggles: [email protected]
BCG: [email protected]
INSEAD: [email protected] 

About Heidrick & Struggles:
Heidrick & Struggles (Nasdaq: HSII) is a premier provider of global leadership advisory and on-demand talent solutions, serving the senior-level talent and consulting needs of the world’s top organizations. In our role as trusted leadership advisors, we partner with our clients to develop future-ready leaders and organizations, bringing together our services and offerings in executive search, diversity and inclusion, leadership assessment and development, organization and team acceleration, culture shaping and on-demand, independent talent solutions. Heidrick & Struggles pioneered the profession of executive search more than 70 years ago. Today, the firm provides integrated talent and human capital solutions to help our clients change the world, one leadership team at a time. For more, please visit www.heidrick.com

About BCG:
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.

Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.

About INSEAD:
As one of the world’s leading and largest graduate business schools, INSEAD brings together people, cultures, and ideas to develop responsible leaders who transform business and society. Its research, teaching and partnerships reflect this global perspective and cultural diversity.

With locations in Europe, Asia, the Middle East, and North America, INSEAD’s business education and research spans four regions. 159 renowned Faculty members from 41 countries inspire more than 1,500 degree participants annually in the Master in Management, MBA, Global Executive MBA, Specialised Master’s degrees (Executive Master in Finance and Executive Master in Change) and PhD programmes. In addition, more than 18,000 executives participate in INSEAD Executive Education programmes each year. 

INSEAD continues to conduct innovative research and innovate across all programmes. The organisation provides business leaders with the knowledge and awareness to operate anywhere. Its core values drive academic excellence and serve the global community as The Business School for the World. For more information, please visit www.insead.edu.

About INSEAD Corporate Governance Centre:
The INSEAD Corporate Governance Centre (ICGC) has been actively engaged in making a distinctive contribution to the knowledge and practice of corporate governance globally. Its vision is to be the leading center for research, innovation, and impact in corporate governance. Through its educational portfolio and advocacy, the ICGC seeks to build greater trust within the public and stakeholder communities, so that businesses are a powerful force for improvement, not only of economic markets but also for the global societal environment. For more, visit www.insead.edu/centres/corporate-governance.

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 Rise of Fraud-as-a-Service, deepfakes surging 4x and more 2024 digital fraud trends uncovered in 4th annual Identity Fraud Report by Sumsub

MIAMI, Nov. 19, 2024 /PRNewswire/ — Sumsub, a global full-cycle verification platform, today released its fourth annual Identity Fraud Report. The report provides a detailed analysis of identity fraud dynamics worldwide based on millions of verification checks and over 3,000,000 fraud attempts analyzed between 2023 and 2024*. The report also includes Sumsub’s Fraud Exposure Survey 2024, featuring responses from 200+ risk professionals and over 1,000 end users.

Identity Fraud Main Trends and Statistics for 2024

Key findings from Sumsub’s report include:

• The top-5 identity fraud types in 2024 are: forged documents (50% of all fraud attempts), chargebacks (15%), account takeovers (12%), deepfakes (7%) and fraudulent networks (4%).
• The report found a significant 4x increase in deepfakes detected worldwide from 2023 to 2024
• The top-5 sectors most affected by identity fraud in 2024 are dating (8.9% fraud rate), online media (7.7%), banking & insurance (2.7%), video gaming (2.3%), and crypto (2.2%).
• The top-5 industries with the highest identity fraud growth rates in 2023-2024 are dating (265%), online media (180%), banking & insurance (162%), fintech (156%) and edtech (144%).
• The analysis of an average fraudster economy demonstrates that, with as little as $1,000 at their disposal, a fraudster group can inflict losses of up to $2.5M a month.
• The global average identity fraud rate more than doubled over three years, growing from 1.1% of all verifications in 2021 to 2.6% in 2024.
• Three-quarters (76%) of fraud occurs during ongoing account use, highlighting the need for continuous checks apart from KYC.
• Account takeover (ATO) attacks have become one of the most damaging forms of fraud. ATO cases surged by 250% YoY, a staggering rise compared to a 155% increase in 2022-2023.
• The Sumsub Fraud Exposure Survey 2024 revealed that, on average, businesses lost approximately $300,000 per fraud event in 2024, and nearly half of companies (45%) and end users (44%) worldwide reported being victims of identity fraud at least once.

“In today’s digital world, identity fraud poses a serious threat to individuals and companies. In 2024, 67% of firms reported a fraud increase,” says Andrew Sever, co-founder and CEO of Sumsub. “The Sumsub Annual Identity Fraud Report has become a go-to resource for industry leaders, with previous editions cited by the UNODC, Statista, Microsoft, and major media outlets. This year, we’ve expanded our research with insights from end-users and risk professionals, providing a detailed look at current fraud dynamics, future predictions, and actionable tips for businesses. As a full-cycle verification platform, we’re committed to sharing these insights to help the community unite against fraud.”

Identity Fraud Landscape: Regional Insights

The report provides a closer look at identity fraud trends of 2024 to see regional differences and make comparisons between countries:

• In Europe, the majority of respondents (56%) reported having fallen victim to identity fraud.
• Africa reveals the highest identity fraud rate growth YoY (167%) among all regions.
• In the US & Canada, 67% of all respondents believe deepfakes have already or will impact the elections in the future.
• The country with the highest overall identity fraud rate in 2024 is Indonesia (6.02%).
• Argentina experienced the highest increase in identity fraud rate YoY of 509%.
• While seven APAC countries are among the top 10 jurisdictions with the highest rates of applicants involved in fraud networks, Oman is the overall global leader.
• South Korea experienced the largest growth in deepfake attacks YoY (735%).

AI and Deepfakes: from Commodity to Commonplace

In 2024, deepfakes—manipulated images, videos, or voices used to impersonate individuals—have become commonplace, with their share among all detected fraud reaching 7% in 2024. Alarmingly, AI and deepfakes are changing the misinformation landscape, with recent AI-generated images of Disney World underwater, or deepfakes of Donald Trump and Kamala Harris impacting electoral campaigns.

According to Sumsub’s Fraud Exposure Survey, 81% of all respondents expressed concerns surrounding the impact of deepfakes on election integrity. At the same time, global consumers reported the lowest level of trust in online media at 48 out of 100 points. Sumsub data indicates that in 2024, deepfakes continue to grow globally, showing higher growth rates in the developing markets:  the Middle East (643%), Africa (393%), and LATAM & Caribbean (255%).

“In 2025, fraudsters will increasingly rely on AI not just for deepfakes–which are, basically, just a tip of the iceberg–but for a broader range of deceptive tools, such as AI-generated identity documents, real-life videos, synthetic voices, and AI-driven chatbots that impersonate real users. These innovations will make fraud harder to detect and more versatile,” explains Pavel Goldman-Kalaydin, Head of AI/ML at Sumsub. “To fight AI-powered fraud, businesses need to deploy advanced multi-layered solutions that can analyze and detect fraud across multiple vectors, ensuring that identity fraud is tackled not just at the visual or biometric level, but across all touchpoints.”

How Cheap It Is to Commit Fraud: the Economy of a Fraudster Disclosed

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The economics of fraud have shifted dramatically, making it easier and cheaper to execute large-scale operations with minimal investment. The rise of “fraud as a service” (FaaS) models allows fraudsters to outsource key aspects of their operations to specialized providers.

On average, a single fraudster can commit around 100 fraudulent activities annually, as supported by industry reports like the Verizon Data Breach Investigations Report. The fraudster economics, explained in the report, highlights that an average potential annual income could be ~$29,988,000, or a potential ~$2.5M gain in one month – with as little as a $1,000 monthly investment.

To learn more and download the full Sumsub 2024 Identity Fraud Report, please go to https://sumsub.com/fraud-report-2024/

* Note on Sumsub’s research methodology

The Sumsub 2024 Identity Fraud Report compares data from 2023 and 2024. In certain cases, 2021-2022 data is also taken into account to observe trends. The report is based on aggregated and anonymized verification statistics on millions of users from 28 industries worldwide, with 3,000,000+ fraud attempts studied. All graphs and infographics are based on internal statistics compiled from the data of consenting customers.

To delve deeper into the state of identity fraud, Sumsub conducted a Fraud Exposure Survey in August 2024, gathering insights from both consumers and companies. The survey included 1,000+ end-users as well as 200+ fraud and risk professionals from companies of various sectors, including banking, crypto, payments, e-commerce, trading, and iGaming.

About Sumsub

Sumsub is a full-cycle verification and ongoing monitoring platform that secures the whole user journey. With Sumsub’s customizable KYC, KYB, Transaction Monitoring, Fraud Prevention and Travel Rule solutions, you can orchestrate your verification process, welcome more customers worldwide, meet compliance requirements, reduce costs, and protect your business.

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• The investment will initially focus on expediting development at existing sites in Navi Mumbai and Ambattur, Chennai, with an additional third site to be added in future.
• The data centres will have a combined capacity of approximately 250MW on completion of all phases.

MUMBAI, India and CHENNAI, India, Nov. 19, 2024 /PRNewswire/ — RMZ, one of the world’s largest family-owned alternative asset owners, and Colt Data Centre Services (Colt DCS), a leading global hyperscale data centre operator, announced a joint venture focused on developing digital infrastructure in the Indian market. The venture represents an equal partnership between RMZ and COLT DCS.

Colt DCS has 25 years of experience developing and operating data centres in Tier 1 markets in Europe, Japan and India. It has recently enjoyed strong growth delivering sustainably designed infrastructure and world-class service for global hyperscale customers. The joint venture will accelerate the delivery of new capacity for their customers in India. RMZ brings 20 years of experience in developing, owning and operating high quality infrastructure in rapidly growing Indian markets. The joint venture will leverage RMZ’s long term relationships with supply chain partners and their Fortune India 500 customers as the company enters the digital infrastructure market.

Commenting on the partnership, Niclas Sanfridsson, CEO of Colt DCS said, “In terms of our expansion India remains a strategic country of focus and key in terms of delivering against our aggressive growth strategy. Colt DCS has a proven track record, working with the world’s largest hyperscale cloud providers and multi-national companies. The partnership with RMZ will provide the opportunity to further accelerate and execute our ambitious plans.”

Commenting on the joint venture, Deepak Chhabria, CEO of RMZ Infrastructure stated, “We are witnessing an extraordinary shift in the data centre landscape, driven by the accelerating demands of cloud adoption and the AI revolution. At RMZ Infrastructure, we recognize that digital infrastructure is not just an investment theme but a cornerstone of India’s economic future. Colt DCS’ proven track record in delivering high-quality, scalable solutions aligns perfectly with our vision for India. Colt DCS commitment to operational excellence and innovation complements our mission to build state-of-the-art facilities that meet the evolving needs of sectors such as banking, financial services, and media. This is our opportunity to shape the future of data infrastructure in India, and we are ready to rise to the challenge.“

About Colt DCS :

Colt DCS provides true service and operational excellence in the sustainable design, build, delivery and operational management of hyperscale data centres across Europe and APAC. They provide data centre solutions to hyperscale and large enterprise customers across 16 state-of-the-art carrier neutral data centres spanning 8 cities.

Their hyperscale and colocation solutions allow their customers the freedom to plan effectively for the growth of their business, knowing that their data centre strategy is ready for the demands of tomorrow.

Colt DCS has over 25 years of experience in the industry, delivering on its vision of being the most trusted and customer-centric data centre operator in the market. They put environmental awareness at the heart of everything they do and have taken ownership to reduce their environmental impact globally and make sustainability a key strategic driver. As part of its sustainability journey, Colt DCS has set comprehensive near and long-term Science-based Targets to cut their emissions in line with the SBTi’s latest Net Zero Standard.

https://www.coltdatacentres.net

About RMZ:

RMZ is one of the world’s largest family-owned alternative asset owners, with a core focus on real estate and infrastructure. As custodians of smart capital, they own and build businesses that set the foundations of a sustainable economy. Their multi-industry scale enables investment in dynamic sectors, geographies, and strategies positioned for long-term growth. Headquartered in India, RMZ specializes in real assets, encompassing premium office, industrial & logistics, hospitality, luxury living, mixed-use developments and data centers.

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With over two decades of expertise in alternative asset investment and development, RMZ is renowned for its tailored real asset solutions. As custodians of smart capital, the family-owned firm owns, develops, manages, and invests in businesses that shape the future, setting the foundations for a sustainable global economy. Future infrastructure initiatives will incorporate innovative technologies and solutions, ensuring responsiveness to evolving market demands.

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