30 November 2015


Retired Member

1,294Posts 4,403,548Views 1,543Comments

The Ten Commandments of fraud prevention

30 October 2013  |  1325 views  |  0

Bankers hold hope that one day improvements in technology will grind fraud to a halt. No doubt this is the right target, but worldwide banking fraud currently tops $120bn - more than New Zealand’s GDP. One key weapon in our armoury is the sharing of best practice. So, in this spirit, here are ten tried and tested tips we have found useful as we work to safeguard our clients and their customers.

Before starting any fraud project clear goals and objectives need to be in place. Simply aiming to keep fraud low isn’t good enough. Set parameters and establish a threshold for fraud costs. Consider the potential impacts and inconvenience any new security measures will have on customers.  

All successful fraud prevention schemes need good quality data. If your data isn’t reliable your hands are tied. Conversely, you can have high quality data and accurate reporting, but if they’re not being used properly they’re useless. Interpreting data correctly and taking effective action to stop fraudsters in their tracks is the key to success. Fraud isn’t a 9 to 5 job so banks need to be on high alert 24/7 and break down the silo mentality. Involve more people in the data interpretation process and make it a collective effort.

Don’t become over reliant on technology when tackling fraud. One size doesn’t fit all - systems need to be reviewed regularly. To see where fraud is being perpetrated you need bespoke, flexible analytics. Doing research is also an important element of fraud control. Thinking like a criminal and uncovering illegal data sold online (card numbers, email accounts etc.) can give valuable insight.

When it comes to managing technology, employ world class expertise. Choose the best systems and get the right people to run them. Look to an experienced provider that you are comfortable with and can rely on. Finally be innovative. With leading edge technology you’ll be one step ahead of both competitors and criminals. 


Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Latest posts from Retired

Big Data Pitfalls: The Amateur Data Scientist

26 October 2015  |  1625 views  |  0  |  Recommends 0 TagsInnovation

Reflections on FinovateFall: Mobile, Money and Millennials

24 September 2015  |  1085 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Interoperability: Prerequisite for Next Generation of Mobile Money

08 September 2015  |  1905 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Think More Broadly: Banks CAN Monetize Cash Transactions

31 August 2015  |  1567 views  |  0  |  Recommends 0 TagsPaymentsInnovation

Software development in the retail FX Industry

28 August 2015  |  387 views  |  0  |  Recommends 0 TagsTrade execution

Retired's profile

job title
member since 2014
Summary profile See full profile »

Retired's expertise

What Retired reads
Retired writes about

Who's commenting on Retired's posts

Ketharaman Swaminathan
Brendan Burge
Astrid Mitchell
Balasubramaniam GD
Tony Ballardie
Graham Seel
Bjorn Soland
John Candido
Gregg Weintraub
Stanley Epstein
Charmaine Oak
Roy Vella