Data fraud: two words that strike fear into any business that deals with data. Which, let’s face it, is 99.99% of businesses these days. That’s why knowing how to prevent data fraud has become essential.
Data fraud is a nasty business. It involves unscrupulous people deliberately skewing data for personal or professional gain. For example, one respondent may submit many duplicate survey entries. Or they may use a bot to do it for them. Unfortunately, this deceptive practice is becoming more and more common.
Fortunately, there are precautions you can take to avoid data fraud and maintain data quality. In this article, we’ll explain the dangers of data fraud. Then we’ll show you how to prevent data fraud with strong data quality.
Why Is Data Fraud a Big Concern for Business?
Fraudulent data can easily undermine business decisions and performance analysis. If someone deliberately feeds you bad data, your research can point you in the wrong direction. For instance, a concept test skewed by bots might convince you to launch the wrong product. Similarly, a brand tracker filled with fake respondents might hide a real drop in customer satisfaction.
The stakes are especially high in competitive industries. A financial services company that relies on poor-quality research could misjudge its market. As a result, it could lose ground to competitors. In addition, data fraud can damage a company’s reputation if bad data leads to public missteps.
Data Quality: The Key to Beating Data Fraud
The best defence against data fraud is high data quality. Quality data meets these criteria:
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- Accurate: recorded correctly and not corrupted by fraud
- Valid: gathered from a relevant source
- Complete: minimal or zero missing data points
- Consistent: a steady flow of accurate, valid, and complete data
- Accessible: readily available when you need it
Businesses that meet a high data quality benchmark benefit in many ways:
- Better decisions and problem solving. The old programming rule “garbage in, garbage out” applies to data too. Accurate, reliable data leads to better results.
- Higher productivity. Employees spend less time fixing errors and tracking down missing data. That frees them up for more meaningful work.
- Smarter marketing. High-quality data helps businesses target campaigns more effectively across channels.
- Easier compliance. To comply with regulations like GDPR and avoid fines, businesses must keep data accurate and secure.
How to Prevent Data Fraud: 4 Key Actions
Building and maintaining high data quality comes down to four main actions.
1. Use Accurate Data Sources
Accuracy is the most important factor in data quality. Do you rely on third-party data to make decisions? If so, make sure it comes from legitimate research and surveys.
Established research panels compensate members for their time, which helps produce consistent, accurate samples. Ideally, panels should also represent a diverse cross-section of society to deliver fair, unbiased results.
2. Apply Cutting-Edge Technology
In online research, security software helps protect the integrity of your survey data. For example, dtect, a Quest Global Research Group company, protects data collection from professional survey takers and people with malicious intent. Its pattern detection and intelligent analysis help spot device mining, bot usage, and other types of automated fraud.
3. Work with Trusted Data Partners
Most businesses use third-party providers for market research and analysis. Before you partner with one, however, do some basic vetting. Start with the company’s history, experience, and client testimonials.
Next, review their methodology and processes. Make sure they prioritize data quality and have the skills and technology to meet your needs.
4. Assign Data Quality Roles
To keep data quality a priority, assign data quality responsibilities across your company. For example, appoint a data steward in each team. Their job is to monitor the quality and reliability of incoming and outgoing data.
Get High-Quality Market Research Insights from a Trusted Source
Quest works with some of the biggest brands in the business, including Amazon, CBS, Chevron, and Forrester. We provide them with valuable, accurate market insights. Specifically, we combine cutting-edge technology and security systems with an engaged, motivated panel of respondents.
Want to see how your sample provider measures up? Download our Online Panel Supplier Quality Checklist to compare quality standards, fraud prevention, and data verification side by side.
