Fraudsters are becoming more sophisticated in their attempts to obtain access to finance, and as such potential fraud is becoming harder to identify early in the application process, whilst still providing a smooth customer journey and confirming the customer is who they say they are. Internal fraud teams are treading a fine line in trying to highlight the highest risk applications but not being seen as the “sales prevention” team. The process is further complicated for many finance providers by their remote relationship with the customer meaning it can be very difficult to confirm.
The latest technology in fraud prevention provides you many effective methods of approaching these challenges by using sophisticated techniques such as;
But how can your fraud team utilise all of these additional data sources without significantly increasing the number of referred applications they are processing?
The key for lenders to maintaining a seamless customer journey must lie in the ability to develop a layered fraud prevention strategy, whereby the lowest risk applications are identified quickly and accepted with minimal checks performed, and the higher risk applications are processed through an additional range of fraud checks which can highlight anomalies or inconsistencies.
To give an example of such a process, a you could choose to use the information provided as standard at point of application to carry out the first layer of assessment by performing an automated identity check and verifying the level of fraud risk associated with the device being used to make the application, and also the e-mail address and phone number provided at point of application. Each of these checks when used in combination can help to build a picture of the level of risk presented by the customer, and also assist in straight through processing for low risk customers, meaning a smooth application experience for them.
If fraud rules are then triggered as a result of the initial checks on the device and other attributes provided at point of application, further checks can then be layered into the process such as bank and card verification, knowledge based authentication questions or document verification. All of these will help to verify the customer’s identity and reduce fraud risk, while keeping them in the online process and out of the fraud referrals queue for as long as possible.
As fraud increases on a global scale it is clear that fraud teams must keep one step ahead of the game when identifying fraudulent applications. A layered strategy such as this will help to ensure that the fraud is prevented before it becomes a significant cost to the business and that genuine customers have a great experience and are approved quickly.
To find out more about how TruValidate helps customers prevent fraud, join our webinar on 2 March 2017 and find out how you can: