Data Orchestration for Fraud Prevention
There has been an awful lot of unsettling news about scams and fraud lately. A crescendo, even. As it happens, orchestration (of both data and process) is one of the most potent weapons in fighting scams and fraud. The good news is this technique is readily available today – and not a moment too soon.
Scams Are Front Page News
In recent weeks scams and fraud have been splashed across headlines everywhere. A New York Times story about people being tricked into sending money to fraudsters (known in the UK as authorized push payment [APP] fraud) on Zelle was one of the top stories for several days running, reverberating across news outlets worldwide.
Meanwhile, the recently released FICO Consumer Fraud Survey revealed a confounding inverse correlation between a meteoric rise in APP fraud in the UK and consumers’ apparent lack of worry about it. In 2020 APP fraud accounted for £479 million in gross losses, but by mid-2021, its occurrence had risen by 71%! APP fraud now makes up 38% of all UK fraud, yet only 6% of UK consumers cite being tricked into sending payment to a fraudster as their primary fraud concern.
The Future of Fraud Management: Orchestration
A number of technologies and techniques are available today to help banks detect and prevent the APP fraud associated with various types of scams. Here are a few metrics from FICO’s…
