Fraud against UK financial institutions and their customers is evolving rapidly as organised criminals move into the mass-market and recession-hit consumers falsify their data, according to figures compiled by credit risk agency Experian.
It is surely intuitive that the level of fraudulent activity increases at times when the economy is under pressure. In short, the Experian research confirms what we always believed.
Financial institutions will have some form of fraud detection software in place which identifies potentially suspect payments, from organised crime syndicates to individuals chancing their luck. Yet having triggered an exception, the problem with essentially
manual systems is how to progress this speedily and effectively, when time is typically of the essence.
Yet proven and well established case management technologies exist which can automatically pick up these exceptions, auto-triage and create a ‘case'. Then, if integrated with an appropriate business process management system, the inherent intelligence of
the software engine applies bespoke pre-set rules to prioritise suspect transactions from legitimate payments.
By creating a seamless end-to-end response backed up by a full audit trail, this ensures agreed customer service levels are maintained, fraud is stopped, operational efficiencies improved and the regulator satisfied. Win, win, win.
Reetu Khosla, director of financial crime solutions, Pegasystems
© Finextra Research 2014