“A leading organization has been the victim of a fraud case recently.” It looks a bit familiar, as these incidents have been the new normal and several incidents of organizations being victims of this fraud have been reported.

Over the last two years, enterprise fraud cases have reached a high number and are still increasing. But how does this happen, and why didn’t the organizations take any precautionary measures? Those are the first questions that come to mind. Another one would be, how do we keep ourselves safe from it? To keep safe and ensure such a thing doesn’t happen to your organization, a new sophisticated model is required, which would provide certain insights to prevent the fraud.

One such model is Enterprise Fraud Management (EFM). This is a process that incorporates data from different payment and non-payment transaction processing systems, online portals, and threat information systems to monitor transactions, score risk levels, case manage, and report on online or offline payment and non-payment transactions with real-time tracking, fraud detection prior to a transaction, and data-driven insights. It collects user data, account, and device data to keep track of any suspicious activities.

EFM gives access to address all aspects of fraud including comprehensive data, data analytics, and investigations. EFM uses a layered approach to deal with high velocity internal and external fraud.

The capabilities of this platform help it to provide a better solution, the capabilities are listed below:

  • Data Integration- it integrates consumer transaction data based on the history of transactions and other related information through all interface channels to aid in enhancing the efficiency of the solution, diminish false positives, and advance real-time decisions.
  • Behavioral Analytics- it helps in uninterrupted observing of behavioral patterns such as hovering of the mouse, typing speed, and activity time with the history. This provides a vigorous verification process if any unusual activity is detected.
  • Risk Scoring- it evaluates real-time transactions and the history of transactions all through various channels, this consists of ownership, client type, organization, location, and other risk governing factors based on a priority level.
  • Real-time detection and Integration- it also leverages artificial intelligence and machine learning technology which aids in identifying concealed abnormalities and planning action.
  • Altering and Case Management-this facilitate notifying and rapidly avoiding high-risk login attempts. Apart from this, it evaluates and indicates the actions as suspicious or legitimate depending on the investigation. This data is then fed into the system to improve the risk scoring activities for the future.
  • Self-service environment- it enables the customer to register themselves in case they are not familiar with the platform and maintain their devices as per the policies of the organization.
  • Omnichannel Support- enables various external channels to join a similar platform. It covers the internal and external aspects of fraud for a satisfactory customer experience. It consists of an approach that is more customer-centric.
  • Visualization and Reporting- gathers data from various channels and integrate it to display in a graphical presentation for better understanding and analysis.

This layered approach makes it easier for the system to segregate the information and provide better data insights. This analytical approach turns out to be one of the most astonishing features of this system, making it an unavoidable system to be implemented in any organization. Real-time tracking also enables us to act before it’s too late for damage control.

It would be appropriate to conclude that fraud management is necessary and has become one of the necessities for any financial institution for running without any hindrance. Enterprise fraud management is one such process that would not only reduce the risk of financial loss but would also cover the reputational loss for any institution. To be stated, Enterprise Fraud Management is required by every organization and is a must for all.

 

Read: Welcome to the Fraud Fighters