Top Tips for Fraud Management
As data breaches hit the news and identity theft numbers increase, businesses have an increasing responsibility to take preventative measures against fraud. This includes automated detection tools to increase efficiency while removing the slower, and oftentimes incorrect, manual review process. Updated fraud models based on better data – including known fraud data – help limit fraud at account opening. Implementation of discreet fraud prevention tools is also key to help minimize fraud from account takeovers and improve the customer experience. Businesses are also limiting fraud by participating in consortiums and exchanges – and potential regulation and industry standards are encouraging sharing about fraud and data loss as well. Our fraud management experts offer the following tips:
- Focus significant prevention measures on the first line of defense: account opening processes. However, don’t neglect the increasing fraud happening with account takeover schemes. Use a multi-layered approach to detect fraud at both account opening and high-risk transactions. Combining alerts can be essential for real-time, multichannel defenses to address a wide spectrum of fraud threats.
- Use internal and external data and analytics to detect hidden patterns for new applications and within existing accounts. Tip-offs to fraud might include application anomalies, unusually high purchases of popular items, or multiple accounts being opened in a short period of time with data in common.
- Leverage external consortium data with velocity and pattern detection to be alerted to suspicious behavior by an applicant at other organizations. With 3rd party velocity and pattern detection alerts, your organization will detect suspicious activity that would have otherwise been missed.
Actionable information about customers and scoring based on financial and other data helps businesses manage the risk of fraudulent behavior. Visit our website to learn more about fraud prevention and identity proofing.
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