Source: ACI Worldwide
As fraud continues to be an ever-pressing concern for banks on a global scale, ACI Worldwide has launched a quick and simple online fraud reduction calculator, much like a mortgage calculator, that allows financial institutions to determine the effectiveness of their current fraud prevention system.
Fighting fraud is not simply about catching the perpetrators of the crime. In an ideal world, banks must be able to predict fraud so it can be stopped before it happens. ACI's new quick and simple fraud reduction calculator helps financial institutions quickly determine the effectiveness of their current fraud detection system. It lets organisations assess their potential for improved performance by measuring what can be achieved with an improvement in percentage of fraud detected, driven by an improvement in the point at which fraud was detected in each instance.
Derren Jones, director of fraud and risk management at ACI, says, "Existing solutions often ignore the most important metric of the model, the point of detection. By ignoring this measure, people can get a seriously misleading indication of actual performance. If the point of detection is lowered, fraud will be found earlier, which results in lower losses.
"Ultimately, the best way to measure the success is to have a balance of three elements: point of detection, false positive rates and finally the detection rate. This provides a complete understanding of a bank's performance. This three pillars methodology has been proven by a number of ACI's high-performing customers around the world. When using the reduction calculator, the golden rule is the earlier fraud is detected, the lower the losses an organisation will suffer."