GBG's Carol Hamilton explains the challenges we face when it comes to managing fraud and highlights the importance of education, technology and data and how they can support our defences against fraud.
We find ourselves in a very digital advanced world, which has increased the challenges we face in the fight against fraud. The fraudster has moved online so they are no longer a real person walking into a bank branch, they are now a masked identity or a group of masked identities working and operating under the radar.
This causes so many problems and it means that verifying the identity and legitimacy of an individual becomes absolutely critical. Unfortunately in a digital world, the access to data, for a fraudster is worryingly wide.
So, a fraudster can take the minimum amount of information they need and then coercively use that to trick an individual, unknowing consumer like you or I, to release more personal information or furthermore, transfer some money to bank account that fraudster operates.
We can tackle this problem in three ways. The first is education. So we need to help consumers understand that they are at risk, and unfortunately, make them paranoid about the threats that are around them. GBG often runs campaign to help people stop and think about where they might be exposed.
The second is through technology. So technology is one of our most valuable assets and we should always be embracing and experimenting with the latest and greatest technology that is faster and smarter that it has ever been before.
And the third point is through data. So a solution will only be as good as the data you put into it. So we suggest that an orchestration layer is used to pull in data from lots of different sources to help increase the accuracy of your fraud detection. Because if you have accurate fraud detection, you get better at preventing it in the first place, which helps to reduce your losses, and protect your organisation.
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