The Ten Commandments of fraud prevention

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.